US-based Innodata has become the latest company to lay off a big chunk of its staff in India. The AI services company reportedly axed nearly 550 jobs in the country, nearly 5% of its global workforce. 

According to a termination email reviewed by India Today, the company cited a “ramp-down of the (a) business assignment” as the reason for the layoffs. It also noted that the decision was not linked to individual performance. Simply put, a major client likely pulled the plug on a massive project and Innodata responded by slashing the costs associated with that project. 

The extent of the layoffs, the teams involved and the status of the affected client assignments remain unclear. Inc42 has reached out to the company seeking more clarity on this. The story will be updated on receiving a response.

As per the report, the impacted employees lost access to official IDs and internal systems in the middle of the workday on Monday (October 26), followed by termination emails sent to their personal email accounts.

Many employees had, as usual, reportedly logged in and marked their attendance before reports of layoffs started circulating around lunchtime. As workers sought clarity from their managers and HR teams, access to company systems was gradually withdrawn, the report said.

The email also noted the impacted employee’s full and final settlement had been prepared through a demand draft, which would be handed over once company-assigned assets are returned.

Separately, the AI services company has also reportedly laid off an undisclosed number of employees in the Philippines.

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