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US-based firm puts on hold plan to terminate employees in Kerala

The employees alleged that the company was attempting to shift operations out of Kerala rather than facing a genuine business slowdown.

Published Jul 04, 2026 | 12:21 AMUpdated Jul 04, 2026 | 12:21 AM

Labour Minister Bindu Krishna intervened after the firm abruptly terminated nearly 800 employees without prior notice.
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Synopsis: Employees at the company’s Kochi and Kozhikode centres were informed of their termination without prior notice after reporting for work, with separation letters issued soon afterwards. The company had cited a decline in business volumes as the reason for winding up operations in the state.

A bid by US-based healthcare technology firm CorroHealth Infotech Pvt Ltd to abruptly terminate nearly 800 employees by shutting down its Kerala operations was put on hold on Friday, 3 July, after intervention by the state government.

Employees at the company’s Kochi and Kozhikode centres were informed of their termination without prior notice after reporting for work, with separation letters issued soon afterwards.

The company had cited a decline in business volumes as the reason for winding up operations in the state.

The move triggered protests from employees, prompting intervention by Thrikkakara MLA Uma Thomas, who alerted Labour Minister Bindu Krishna.

Following discussions with company representatives, the Labour department directed the firm to maintain the status quo until further talks.

A meeting chaired by the Labour Secretary with the company’s senior management has been scheduled in Thiruvananthapuram on 6 July to determine the future course of action.

Until then, the proposed termination of employees and closure of the Kochi and Kozhikode centres will remain on hold.

Meanwhile, employees questioned the company’s claim of reduced workload, pointing out that recruitment is continuing at its facilities in other parts of the country.

They alleged that the company was attempting to shift operations out of Kerala rather than facing a genuine business slowdown.

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