CITU Slams US-Based CorroHealth for Mass Layoffs of 800 Employees in Kerala
CITU has condemned the mass layoff of 800 employees by CorroHealth Infotech in Kerala, blaming new Labour Codes for reduced worker protections. Former minister V. Sivankutty criticised the higher threshold for government oversight, calling for stronger regulations to ensure job security for workers.
The Centre for Indian Trade Unions (CITU) has issued a sharp condemnation following the reported termination of nearly 800 employees by the US-based medical coding firm CorroHealth Infotech Private Limited. The layoffs, which have impacted several centres across Kerala, have sparked significant unrest and prompted calls for immediate government intervention to protect the livelihoods of the affected workforce.
V. Sivankutty, the CITU state secretary and former Labour Minister, addressed the media in Thiruvananthapuram on Sunday to challenge the company’s actions. He argued that the firm is leveraging recent changes in national labour legislation to facilitate large-scale retrenchments. As per a report by The Hindu, the focus of the criticism is the Industrial Relations Code, which has raised the threshold for mandatory government approval regarding layoffs from 100 to 300 employees. AI To Displace 15 Million US Jobs, Roughly 9% of Labour Market: Goldman Sachs Top Economist Joseph Briggs.
Union leaders assert that this legislative shift has effectively weakened the job security of thousands of workers in the private sector. By increasing the threshold, establishments are now able to initiate mass retrenchments without the same level of oversight that was previously required, a situation that the CITU claims leaves employees vulnerable to arbitrary termination. The organisation has vowed to escalate its protest against what it describes as the exploitation of policy loopholes. Microsoft Preparing New Round of Layoffs Hitting Sales, Consulting and Xbox.
Wider Implications for the Tech Sector
The situation at CorroHealth Infotech highlights the growing tension between corporate operational strategies and existing labour welfare standards in India’s growing technology and services hubs. While the firm has maintained that its actions are consistent with its business requirements, the incident has reignited the debate over the balance between ease of doing business and the necessity of robust labour safeguards. CITU has called upon the state and central administrations to re-evaluate the impact of the new Labour Codes on workforce stability to prevent further industrial disruption.
(The above story first appeared on LatestLY on Jul 05, 2026 04:24 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).