Innodata falls 27.04% amid reports that about 550 employees in India were affected
Key Facts
Innodata shares fell 27.04% in trading on October 27, 2026, to $43.71, compared with a previous close of $59.91, with 4.9 million shares traded, according to Investing.com data. The move came on a day when India Today reported that about 550 employees were affected by layoffs in India. The company did not disclose the total number affected in India or the Philippines. India Today also did not mention the stock's movement or link the decline to the layoffs. Thus, a sharp stock drop and reports of job cuts occurred on the same day, without the company publicly confirming the scale of the reductions.
India Today said about 550 employees in India were affected by the layoffs on October 26, while reports indicated job cuts among the company's teams in the Philippines without specifying the number of employees there. The report describes the figure for India as about 550 and does not attribute official confirmation of it to Innodata. A termination letter reviewed by the newspaper shows that one employee's termination took effect on October 26, their last working day. The letter said the decision was made "in light of prevailing business and operational requirements" and that it "is not related to individual performance." It also attributed the termination to a reduction in the work assignment given to the employee.
Employment figures disclosed in the annual report provide a measure of the company's size before the reported layoffs: Innodata had 10,107 employees worldwide as of December 31, 2025, including 10,020 full-time employees, according to its filing with the U.S. Securities and Exchange Commission. That figure does not reveal how many employees remained after the job cuts reported in October 2026. The layoffs follow a period of strong business expansion; the company reported revenue of $92.1 million in the second quarter of 2026, up 58% year over year. The company said revenue exceeded analyst consensus by 7%. Net income was $14.4 million, compared with $7.2 million in the second quarter of 2025.
Innodata said the second quarter was its twelfth consecutive quarter of year-over-year revenue growth, and that quarterly revenue exceeded full-year revenue from three years earlier. In the same results, the company reaffirmed its forecast for fiscal 2026 revenue growth of 40% or more compared with the prior year. Its reliance on a limited number of customers remains a notable feature of its revenue mix: its largest customer accounted for 37% of second-quarter revenue, after representing 56% in the first quarter. Meanwhile, the share of a customer in the big tech sector that the company disclosed in the previous quarter rose from 17% to 34% between the quarters. These figures highlight a shift in the customer mix, while one customer still accounted for more than a third of quarterly revenue.
The company said in its financial statement that customers may reduce, defer or cancel projects, in discussing the business's reliance on projects. The termination letter ties the case of the employee whose letter India Today reviewed to a reduction in a specific work assignment, while the company has not publicly stated that this is the reason for all the reported cuts. The reports coincided with a planned leadership transition that took effect on September 30, 2026: Rahul Singhal became chief executive, and Jack Abuhoff moved to the role of executive chairman. On the same date, Innodata announced the opening of a research and development lab to collect training data for humanoid robots and validate their performance data. Guidance for fiscal 2026 revenue growth remains at 40% or more, as reaffirmed in the second-quarter results.