Kerala Government Halts US Company's Mass Layoff of 800 Employees Without Notice
A United States-based technology company's attempt to abruptly shut down its offices in Kochi and Kozhikode, leaving nearly 800 employees jobless without prior notice, was halted on Friday following intervention by political leaders and the Labour department.
CorroHealth Infotech Private Limited, which provides healthcare analytics and technology-driven solutions to hospitals, informed around 600 employees at its Palarivattom office in Kochi that they were terminated with immediate effect. Another 200 staff at its Kozhikode centre were similarly affected. Employees received a 'separation and full and final settlement' letter via email shortly after reporting for duty.
Young employees immediately protested and alerted Thrikkakara MLA Uma Thomas, who contacted the district labour officer and Labour Minister Bindhu Krishna. Local political party and trade union leaders also arrived at the scene.
An affected employee said, 'We were told the company was shutting down due to a drop in work volume. There was no prior notice, and even our manager was unaware. The reasoning is unconvincing since the company is hiring at other centres in India.'
After a meeting with company officials, Ms. Thomas stated that the Labour department had directed the firm to maintain the status quo. The Labour Secretary will convene a meeting with senior company representatives on Monday to decide the future course. 'Employees point out that the company is hiring in other locations, including Uttar Pradesh. It appears they want to shift operations outside Kerala. While the company expressed willingness to pay compensation, we have urged them to retain jobs here,' she said.
Another employee alleged that the company was displeased with workers asserting their rights under Labour Codes, including overtime pay, and refusing holiday work—practices the firm might enforce more freely in other states. Company officials were unavailable for comment.
The separation letter, dated July 3, 2026, attributed the termination to a 'workforce restructuring exercise due to a sustained downturn in the company’s HCC vertical and resulting reduction in operational requirements.' It stated that terminated employees would lose access to company email and servers, cease eligibility for employee benefits, and be barred from entering company premises or contacting clients.
The letter added that the company would pay statutory and contractually agreed sums via bank transfer within two working days, subject to return of company assets. It also offered a one-time ex-gratia compensation of one month's gross salary, with the condition that accepting it waives any right of action against the company.
The state government's intervention has temporarily stalled the layoffs, with further discussions scheduled to explore options for retaining employment in Kerala.
