CorroHealth temporarily freezes its abrupt decision to lay off 900 employees in Kerala following government intervention and intense staff protests.

Kochi: A sudden mass layoff at US-based medical coding firm CorroHealth sparked intense protests on Friday after the company abruptly shut down its offices in Kochi and Kozhikode. The unannounced closure left nearly 900 employees stranded without prior notice.
According to affected workers, those arriving for their morning shift were unexpectedly barred from duties. Representatives instructed them to hand in their identity cards, collect their relieving letters and vacate the premises. While management offered a three-month compensation package, employees condemned the move as inhumane and demanded a minimum of 10 months' severance pay to cope with the sudden job loss.
While the firm cited financial constraints as the primary driver behind closing its Kerala operations, employees alleged that CorroHealth is actively hiring new personnel in other locations, including Hyderabad.
Following the backlash, a high-level mediation meeting was held at the site involving Thrikkakara MLA Uma Thomas, Minister Sunny Joseph and senior Labour Department officials alongside company executives.
Following the deliberations, the management agreed to temporarily freeze the termination process. It was decided that employees can report to work as usual, and their salaries and benefits will continue undisrupted until an amicable, long-term resolution is reached. A final decision regarding the closure and future operations of the firm will only be taken after subsequent rounds of talks.
Published: 03 Jul 2026, 04:01 pm IST
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