Zoho Cancels Salary Hikes For 2026 As AI Costs Soar, Sridhar Vembu Explains Why
- Zoho will not provide its usual annual pay increases or conduct routine appraisals this year, according to Sridhar Vembu, as the company reduces spending.
- Vembu said rising AI expenses, including a fourfold increase in server prices, and geopolitical challenges are adding pressure.
- Zoho has reduced its marketing budget and has not increased its employee count for 18 months, Vembu said.
- Vembu said Zoho will work to avoid mass layoffs but warned that the outlook for software jobs is grim as the company reinvents itself.
22 Articles
22 Articles
Zoho founder Sridhar Vembu has acknowledged that the company is facing its most challenging period due to the rising costs of AI. He even canceled employee appraisals, citing this as a key reason.
Zoho Cancels Salary Hikes For 2026 As AI Costs Soar, Sridhar Vembu Explains Why
Zoho employees will not receive their usual annual salary hikes this year as the company looks for ways to manage rising costs. Founder Sridhar Vembu has said the company is cutting spending, including its marketing budget, as higher artificial intelligence (AI)
No appraisal for Zoho staffers? Sridhar Vembu cites rising AI costs, says ‘usual pay increase’ unlikely this year
Zoho co-founder Sridhar Vembu said employees would not get their usual pay hike this year amid rising AI costs and geopolitical challenges. He pledged efforts to avoid mass layoffs and warned of a grim outlook for software jobs as Indian IT firms rethink hiring and workforce skills.
No Salary Hikes at Zoho: Are Mass Layoffs Coming to the Software Major? Know What Sridhar Vembu Said
Zoho Corp has frozen salary increases and cut marketing budgets due to surging AI server costs and market uncertainties. While Chief Scientist Sridhar Vembu warned that the general outlook for software jobs is grim, he stated that the company will work hard to avoid mass layoffs while undergoing a 3-to-5-year operational reinvention. No Salary Hikes at Zoho: Are Mass Layoffs Coming to the Software Major? Know What Sridhar Vembu Said.
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