Kochi: ‘BlueLabs wind up, about 100 techies loose jobs’ would have been the ideal caption for this article but with allegations and counter allegations, we decided to take the safer option. About 100 employees of the Infopark based BlueLabs Technology Solutions, who lost their jobs recently, have come out in the open with their allegations about the CEO’s mismanagement of the company which eventually led to the firm’s closure.
Founded in 2007 by Mathews Jose, an entrepreneur, BlueLabs Technology Solutions is an IT Services and Technology Consulting firm with operations in Infopark Kochi (Leela Infopark) and Infopark Koratty near Thrissur. In fact BlueLabs was the first company to move into Infopark Koratty in November 2010 and the company had, at its peak, about 130 IT professionals on its rolls.
It was on September 22, 2010 that some comments about the CEO were first posted on a previous article about BlueLabs on Kerala IT News. Several more comments and criticisms were posted on the next day and we got in touch with the CEO for a clarification. Quoting from a mail to Kerala IT News, Mathews said, “We lost two of our major clients and client payments worth crores got stuck. It affected the working capital of the company and we decided to close the operations of the company”. As most of the comments were not in good taste, we decided to remove them and posted an update to the news item on September 24, 2010.
As we continued to get more calls, comments and mails, we also contacted the Infopark CEO and found that BlueLabs had not paid the rent to Infopark for the last six months and Infopark had issued them notice to vacate. BlueLabs went to Court for a stay and in spite of a Court order to pay up by September 19, 2010, the company had failed to do so. We also came to know that PF contributions and TDS have not been deposited in the Government Treasury even though it has been deducted from the employees.
According to some of the ex-employees, it was in this context that the CEO decided to wind up the operations of the company to avoid paying up the employees, some of them who haven’t been paid their salary for months together. Meanwhile, Mathews is said to have started another a new company with about 12 former employees of BlueLabs and 30 new recruits. (In his mail, he had mentioned to us that he will be back in business soon) The ex-employees also allege the CEO’s flamboyant and extravagant lifestyle along with bad management skills as the reasons why the company has wound up.
Kerala IT News is now publishing most of the comments as we feel our readers have a right to know how a good IT company wound up. Also please do check our earlier story Paragon fellowship to BlueLabs CEO.
Kerala IT News