Innodata cut around 500 employees after sudden system access outage
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Aaj Tak
www.aajtak.in

Innodata cut around 500 employees after sudden system access outage

The German company Innodata, which provides services in artificial intelligence (AI) and data processing, suddenly laid off about 550 employees in India and the Philippines. This incident occurred on October 26 when employees faced an abrupt cessation of work.

According to those affected, Monday morning started as usual: they logged into the system, marked their attendance, and began working. However, closer to lunchtime, suspicions arose. The team in the Philippines received a termination notification via a Zoom conference call.

When some workers checked the company's HR portal, they discovered that on October 26, their 'official resignation' had been registered, and a last working day was set. Before employees could figure out the situation or contact their managers, their official devices began to be blocked, laptop access was disabled, and corporate IDs were deactivated.

Access to the HR accounting application was also immediately revoked, preventing employees from downloading pay slips or other necessary documents. Later, termination letters began arriving at employees' personal email addresses.

According to the termination letters obtained by India Today, the reason for the layoffs was cited as 'reduction in business tasks.' These messages stated that the decision to cease services at Innodata India Private Limited was made considering 'commercial and operational needs.' The company emphasized that this decision was not related to the individual performance of any employee.

Information gathered from Reddit discussions and internal channels indicates that the mass layoff was linked to the MUPSL project. Specialists in AI data analysis and process analysts from American, Philippine, and Indian teams were affected. Their positions were declared redundant due to a decrease in service volume from a major client.

It was also stated that the final settlement would be prepared as a payment order, which would be transferred after the return of all company assets, including laptops. However, the company did not disclose the exact number of laid-off employees in its official statement.

Due to the suddenness of the layoffs, employees created a WhatsApp group to contact each other. By evening, over 500 people had gathered in this group, who were shocked and disoriented by this unexpected decision.

It should be noted that Innodata, based in New Jersey, provides services to giants such as Google, Microsoft, Amazon, Apple, and Sony, handling tasks like data labeling, model training, and security testing. Although the company globally employs thousands of people, this round of layoffs has once again raised serious questions about the instability of the technology sector and the harshness of the corporate world.

The reduction at Innodata is not an isolated case. At the same time, Microsoft announced a 'voluntary separation offer' for selected employees in the US, Canada, the UK, and India, indicating a rapid shift in business priorities within the technology and AI sectors. Nevertheless, the main problem facing Innodata employees now is that they have been suddenly dismissed and are forced to gather their employment records.

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Microsoft announced a new voluntary redundancy program targeting approximately 60,000 employees located in the United States, Canada, India, and the United Kingdom. The company disclosed this information to AFP on Monday, the 26th, six months after presenting a similar initial proposal.

This new package of offers applies only to certain units of the corporation and is described as another strategy by the group to adjust its workforce to current demand changes. Amy Coleman, Director of Human Resources, informed employees that this measure aims to 'adapt its staff to evolving needs.'

The proposal is available to employees up to the vice president level, with exceptions for certain professionals in the sales, marketing, and data center sectors. Those who choose to accept the offer and leave the company will have access to conditions equivalent to standard severance compensation.

Regarding the first plan, which was aimed at employees whose combined age and length of service reached at least 70 years, the company reported that about one-third of those eligible joined in July. At that time, it was clarified that such positions were not being replaced by Artificial Intelligence.

According to the company's annual report, there was a reduction of 5,000 employees in the last twelve months, ending on June 30, a rate not seen since 2016. Furthermore, Microsoft plans to increase its investments to over US$ 50 billion (equivalent to BRL 274.9 billion) during the next period, with results from the July to September quarter to be announced on Wednesday.

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