Zoho cancels usual pay hike amid rising AI costs
In short
Zoho co-founder Sridhar Vembu said employees will not get the usual pay hike this year. He blamed rising AI costs and geopolitical challenges, and said the company wants to avoid mass layoffs.
This matters for Zoho workers and for Indian IT hiring more broadly. The reporting says the software jobs outlook is grim, but it does not say how many jobs could be affected.
What the reporting says
Zoho co-founder Sridhar Vembu said employees would not get the company’s usual pay hike this year, citing rising AI costs and geopolitical challenges. The reporting says he also pledged efforts to avoid mass layoffs and warned of a grim outlook for software jobs as Indian IT firms rethink hiring and workforce skills. It does not specify the size of the hike, the timeline beyond this year, or any layoffs.
Why it matters
Zoho co-founder Sridhar Vembu said the company will not give its usual salary increase this year, citing rising AI costs and geopolitical challenges. He also said Zoho will try to avoid mass layoffs and warned that software jobs may face a grim outlook as Indian IT firms rethink hiring and workforce skills. The reporting does not give the scale of the cost pressure or any concrete headcount cuts.