'AI Has Raised Costs': Sridhar Vembu Announces No Salary Hikes at Zoho This Year, Warns of Uncertain Software Job Market
- 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.
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11 Articles
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.
Sridhar Vembu says no appraisals at Zoho this year, company working hard to avoid mass layoffs
Zoho founder Sridhar Vembu has confessed that the homegrown company is facing a difficult time. Vembu says that Zoho has cancelled appraisals this year, and is trying hard to avoid layoffs amid rising expenses due to AI.
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