AI concept stock Innodata saw its share price plummet over 25% yesterday due to workforce reductions stemming from client contract scaling back. The company laid off approximately 550 employees in India and also conducted layoffs in the Philippines. These layoffs sparked investor concerns, causing Innodata's market capitalization to evaporate by $500 million in a single trading day, wiping out all market cap gains since November 11, 2024. Innodata primarily provides data annotation and security testing services for AI labs, with 70% of its Q2 revenue derived from two major clients.