A global data engineering and Artificial Intelligence (AI) services firm has reportedly laid-off around 500 people in India and has raised concerns in the tech sector.

Multiple staff members reported that they were unable to access company systems. Some said that they had been informed of their dismissal via their personal email addresses.

This has caused some concern in the current uncertain tech employment market globally. Staff members in the Philippines have reportedly also had staff cuts. However, Innodata has yet to comment on how many staff members were affected across the company.

Innodata Layoffs

Many staff members said that they commenced their usual day at work but became concerned once they heard about the staff members being dismissed from the Philippines.

Staff members in India then found themselves unable to access their company laptops. They said that they contacted their managers and HR to try to clarify what was happening to them.

Some staff members said that they had received messages regarding their dismissal.

Whilst this has raised questions over how employees were communicated with by management during the staff cuts, each situation may be different.

Why Have They Laid Off Staff?

We do not currently know why the company have reportedly laid off staff.

The company provide data engineering, AI training data, AI generation and services which help tech companies develop and test their AI models.

They have been growing their AI offering and performed well in Q2 2026. In August, they announced they had achieved $92.1m in revenue, representing an increase of 58% year-on-year. They said how their business with AI developers was growing and their services offering was expanding.

However, just looking at their financial figures doesn’t give us any clarity. There is no official statement from Innodata linking the staff cuts to any particular decisions.

Concerns Over System Access Being Removed Suddenly

• One of the biggest concerns around the staff cuts has been that they were reportedly abruptly cut off from access to their systems.
• Some staff members said that they were unable to access key information relating to their employment due to being unable to log in with their company details. This caused problems for employees trying to find their payslips.
• There has been some discussion over how important clear communication is during dismissal.
• If you are in a similar situation, try to keep copies of your employment contract, payslip, dismissal letter and other documents. You may want to contact your HR to find out more about your final payment.
• Your obligations legally and contractually will depend on your employment agreement and the laws affecting you.

Are More Layoffs Happening In The Indian IT Sector?

• The Innodata news comes as there has been changes in the tech employment market.
• Tech companies globally are looking to change their staffing needs as they invest into AI, automation, cloud computing and niche technical skills.
• This has caused some uncertainty for some employees.
• However, there can be a variety of reasons why layoffs are happening in the tech industry. Companies may be restructuring their teams as their customers needs have changed, they are cutting costs, projects have been cancelled or their business direction has changed.
• The Innodata situation has attracted more attention due to the statements from staff members regarding how they were dismissed.

What Should Employees Do?

If you believe you have been affected by the staff cuts, it is best to get clarification in writing. Ask your employer about your final date of employment.

Ask your employer about any money you are owed, your notice pay, redundancy, any unpaid leave and how you will obtain your employment and tax documents.

It is helpful to keep copies of any official communication and notes of what you asked from your HR department.

If you feel your contractual or legal rights have been breached, you may want to speak to a qualified employment lawyer or labour authorities.