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900 Employees Axed Overnight: Kerala Govt Steps In After Mass Layoffs at US Healthcare Firm

900 Employees Axed Overnight: Kerala Govt Steps In After Mass Layoffs at US Healthcare Firm

Bavana Guntha
July 4, 2026

In a development that has sparked widespread concern over employee rights and workplace practices, nearly 900 medical coding professionals employed by the Indian operations of a US based healthcare analytics company were allegedly dismissed without prior notice on Friday. The sudden move triggered protests outside the company's offices in Kochi and Kozhikode , forcing the Kerala government to intervene.

According to the affected employees, they arrived at work on Friday morning only to discover that their services had been terminated. Many claimed they were neither informed in advance nor given the contractual notice period, leaving hundreds of families facing unexpected financial uncertainty.

The abrupt layoffs quickly drew political attention. Thrikkakara MLA Uma Thomas reached the company's Kochi office after workers staged demonstrations demanding justice. She later contacted Kerala Labour Minister Bindhu Krishna , urging immediate government intervention to protect the employees' interests.

Speaking to reporters, Uma Thomas said the management had agreed to hold discussions and consider compensation in accordance with the directions of labour authorities. She stressed that the government's immediate priority was to ensure that the affected employees could continue in their jobs while the matter was being examined.

The Kerala Labour Department promptly stepped into the dispute and held discussions with company representatives. Following the meeting, officials announced that the termination process would remain on hold until further deliberations.

Labour officials also confirmed that the company had assured them that no final decision regarding the dismissals would be taken before a formal meeting with the Labour Secretary , scheduled for July 6 . The meeting is expected to determine whether the mass layoffs complied with labour laws and contractual obligations.

The company has not issued any official statement or responded to media queries regarding the allegations.

The incident has reignited debate over corporate accountability, employee protections, and the growing need for strict enforcement of labour laws in India's rapidly expanding healthcare and outsourcing sectors. With hundreds of livelihoods hanging in the balance, all eyes are now on the upcoming talks between the company management and state labour authorities, which could determine the future of the affected workforce.

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KeralaMedicalCodingHealthcareJobsMassLayoffsLabourRightsKochiEmploymentNewsUSHealthcareKeralaGovernmentIndiaNews
900 Employees Axed Overnight: Kerala Govt Steps In After Mass Layoffs at US Healthcare Firm - The Morning Voice