Kerala’s tech sector has been rocked by yet another labor crisis. Days after nearly 800 employees lost their jobs following layoffs at a US-based medical coding company, Kochi-based Talrop has announced the closure of 21 companies operating under its ecosystem across the state. The decision has left more than 300 employees struggling with unpaid wages, with many claiming they have not been paid for periods ranging from four to 11 months. The shutdown has sparked protests, labor complaints and fresh concerns about the financial stability of tech startups that once promised to transform Kerala into a major innovation hub.
Employees take to the streets for outstanding wages
Anger spilled onto the streets on Saturday as aggrieved employees marched to Talrop’s headquarters in Thrikkakara, demanding immediate payment of their outstanding salaries and other dues. The protest came a day after the company publicly announced its decision to shut down its ecosystem businesses via a post on Instagram. The announcement shocked many employees, many of whom said they had been waiting for months to receive their salaries. Many workers alleged that repeated assurances from management did not translate into actual payments, forcing them to turn to labor authorities.
The company blames AI and business transformation
In its public statement, Talrop described the closure as a strategic decision after operating for more than a decade. The company said its ecosystem had grown into a Rs 250 crore company that focused on innovation, entrepreneurship, technology and community development. However, he admitted that the business model no longer suited the rapidly changing technology landscape. According to the company, the emergence of artificial intelligence has fundamentally altered the dynamics of the industry. Talrop claimed that maintaining its previous operating model required an annual expenditure of close to 100 million rubles, making it financially difficult to continue. The company also announced a shift toward what it calls “Talrop 7.0,” under which it plans to move away from its community-driven ecosystem and focus on institution-led projects.
The management undertakes to settle the quotas
Despite the shutdown, Talrop has insisted that he has not abandoned his financial responsibilities. A company spokesperson described the shutdown of ecosystem businesses as temporary and attributed the financial crisis to multiple factors, including the rapid rise of artificial intelligence and funding disruptions caused by conflict in West Asia. Management said it intends to settle outstanding wages and compensation before October and has maintained it is cooperating with the labor department during the process.
The Department of Labor receives several complaints
The dispute has now reached the Kerala labor authorities. Employees have filed complaints in districts like Ernakulam, Thiruvananthapuram and Kannur, alleging prolonged non-payment of salaries. Labor department officials said that while the company had settled some complaints earlier after the department’s intervention, it later stopped responding as the number of complaints increased. Since then, aggrieved employees have been advised to file formal grievance petitions with the employment tribunal.