Zoho founder Sridhar Vembu says the company will not provide its usual employee salary hikes this year. In internal communications relayed by multiple outlets, he tells staff the decision reflects higher operating costs tied to artificial intelligence, along with additional pressures including higher server prices and broader geopolitical uncertainty.
Outlets also report that Zoho is tightening spending, including reduced marketing budgets, and has not added to its workforce for roughly 18 months. Vembu frames the move as part of an effort to navigate “tough times ahead” and reduce the likelihood of mass layoffs. Several reports note that Zoho has paused or cancelled planned appraisals and performance reviews, while continuing to seek ways to “reinvent” the business over the coming years. One outlet also says Vembu warns about a grim outlook for software jobs and discusses concerns about job displacement from AI, including criticism of universal basic income.
