U.S. technology company’s move to shut down centres in Kerala taking down around 800 jobs halted

A move by a U.S.-based technology company to shut down its offices in Kochi and Kozhikode, rendering nearly 800 people jobless reportedly without prior notice, was stalled on Friday following the timely intervention of political leadership and the Labour department.

Around 600 employees of CorroHealth Infotech Private Limited, a firm providing health care analytics and technology-driven solutions to hospitals and health-care systems, who reported for duty at the Palarivattom office in the morning were stunned to be informed that they had been terminated with immediate effect. The company employs another 200-odd staff at its Kozhikode centre. Shortly thereafter, the employees received a “separation and full and final settlement” letter in their mail.

Employees, mostly youngsters, registered their protest and alerted Thrikkakara MLA Uma Thomas over phone. Local leaders of political parties and trade unions soon arrived at the scene. Ms. Thomas summoned the district labour officer and also alerted Labour Minister Bindhu Krishna.

‘Drop in work volume’

“We were told the company was shutting down its Kochi and Kozhikode offices due to a drop in work volume and that we had been terminated. There was no prior notice, and even our manager was unaware. The reasoning about reduced work volume is unconvincing since the company is hiring at its other centres in India,” said one affected employee.

Emerging from a meeting with company officials, Ms. Thomas said the Labour department authorities had directed the firm to maintain status quo, while the Labour Secretary would convene a meeting with senior company representatives on Monday to decide the future course of action. “Employees point out that the company is hiring in other locations, including Uttar Pradesh. It appears the firm wants 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 irked by workers asserting their rightful dues under Labour Codes, including overtime pay, and by their refusal to be exploited through holiday work, practices the firm could perhaps enforce more freely in other States. Company officials were unavailable for comment.

The “separation letter,” dated July 03, 2026, attributed the abrupt termination to a “workforce restructuring exercise due to a sustained downturn in the company’s HCC vertical and the resulting reduction in operational requirements.” It stated that terminated employees would have no access to company email and servers, cease to be eligible for employee-related benefits, and be barred from entering company premises or contacting clients, consultants, agents, or suppliers.

“The company will pay you all statutory and contractually agreed sums as part of your full and final settlement (separation amount) via bank transfer to your designated account after deduction of taxes, calculated up to the separation date. The separation amount will be paid within two working days, subject to return of all company assets and clearance from relevant departments,” according to the letter.

“Additionally, as a one-time payment, the company has decided to pay a gratis compensation of one month’s gross salary (ex-gratia compensation) over and above your statutory and contractual dues. By accepting the ex-gratia compensation, you hereby waive any right of action against the company for any amounts outstanding, if any, and any other claims or rights of action against the company in connection with your employment,” the letter read.