Layoffs of Nearly 550 Employees in India Put Innodata in Focus Ahead of Results
Key Facts
Innodata laid off about 550 employees in India and recorded job cuts in the Philippines, according to press reports on October 26, 2026. People Matters, citing India Today, reported that the number in India was close to 550, but the company did not announce the total number affected in the two countries. It also provided no public details about the reported cuts in the Philippines. The report quoted an employee as saying workers began losing access to their devices and official accounts before termination messages arrived in their personal accounts. The employee said: "We began losing access to our official devices one by one; laptops were decommissioned and official accounts were disabled." The news puts the job cuts in the context of the company's performance, but its timing does not establish a link to the stock's movement in the same session.
EL7 data showed that the company's stock, listed under the ticker INOD, closed at 59.91 dollars on October 26, compared with 59.39 dollars on October 23. The close therefore rose between the two sessions, contrary to the first draft's description of the move as a decline. The stock recorded a daily gain of 0.88% on October 26, according to Investing.com data. It traded between 57.70 and 60.98 dollars during the session, according to the same source. The layoffs report was published on October 27, a day after the October 26 session. The available information therefore does not establish that the layoffs caused a drop in the stock during the previous session; the session ended higher than the prior close.
On what happened inside the company, an employee said a WhatsApp group was set up to check on affected colleagues, and that its membership approached 500 by the evening of October 26. The report quoted the employee as saying: "By late evening, we had nearly 500 people, all of them unsure what was happening and in a state of panic." The figure describes the group's members as reported by the employee and does not establish that all of them lost their jobs. In the Philippines, reports said cuts had taken place in the company's teams, without disclosing the number affected or details of the cuts. The company has not publicly confirmed the total layoffs in India and the Philippines. The India figure remains an estimate cited in a press report, while no comparable figure has been disclosed for the Philippines.
The reports come after Innodata announced strong results for the second quarter of 2026, with revenue of 92.1 million dollars, up 58% year over year, while adjusted earnings before interest, taxes, depreciation and amortization reached 25.4 million dollars. Net income was 14.4 million dollars, compared with 7.2 million dollars in the second quarter of 2025. For the previous year, the company generated revenue of 251.7 million dollars in 2025, up 48% year over year. These figures highlight continued business growth ahead of the next results announcement, while the reported job cuts add a new operational consideration for investors. The company has not provided information linking the cuts to its financial performance or a change in its outlook.
Company disclosures showed that its largest customer's share of revenue fell from 56% in the first quarter to 37% in the second quarter of 2026. Meanwhile, the share of a large technology customer previously disclosed by the company rose from 17% to 34% over the same period. Innodata had reaffirmed its forecast for revenue growth of 40% or more in 2026, after raising its guidance from about 35% or more. These indicators provide context for assessing the company's upcoming results, including changes in its customer mix and continued elevated growth expectations. The investor relations page also listed a September 30 announcement that the company had opened an AI motion capture lab to help humanoid robots move like humans. Available disclosures do not link that announcement or the growth outlook to the reported employee layoffs.
The next date the company has set for investors is the announcement of its third-quarter 2026 results after the market closes on November 5. The report will offer an opportunity to compare revenue and profitability with second-quarter results, which included year-over-year revenue growth of 58% and net income of 14.4 million dollars. Investors will also look for information on job cuts in India or the Philippines, after the company did not announce the total number or details for the Philippines in the available reports. Until then, what is confirmed about the stock's movement is that its October 26 close was higher than its October 23 close. No link between the layoffs and the company's financial or stock performance has been reported in the available information.