You can read it either way, I think. So you can read it as intended, "he was refused jobs 40 times" or another way that reads "he has refused 40 different jobs"; the first sounds like others are refusing him, and the second is more like he is refusing the jobs; I believe it can be correctly read either way.
I probably just would have the made the headline clearer without changing the grammar. "Indian engineer named Suddam Hussain, denied 40 jobs due to name."
The slight change to deny makes it clear he is being refused work, rather than he is refusing work, and the bit at the end just clarifies the whole thing, although it isn't strictly necessary after the change to deny.
I'm English and the headline reads correctly to me. Are you from the U.S? How would you phrase it?