{
  "id": 14119887,
  "title": "Zoho’s Sridhar Vembu tells staff no hike this year, tries to avoid layoffs",
  "url": "https://urgent.news/2026/10/13/zohos-sridhar-vembu-tells-staff-no-hike-this-year-tries-to-avoid",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-13T03:31:01.000Z",
  "source": {
    "name": "Times of India",
    "slug": "times-of-india",
    "url": "https://timesofindia.indiatimes.com/technology/tech-news/zoho-founder-sridhar-vembu-warns-employees-of-tough-times-ahead-says-no-hike-this-year-trying-to-avoid-layoffs/articleshow/134906916.cms"
  },
  "original_language": "en",
  "account": "Zoho's founder, Sridhar Vembu, has communicated to staff that the company will not provide the customary year-end salary increases due to escalating expenses tied to artificial intelligence and an unpredictable business landscape. In a post on X, Vembu highlighted that the software sector's future is uncertain, with AI driving up operational costs, particularly for server prices, which have quadrupled. He also noted that rapid AI adoption has led to higher expenses, which the company is striving to manage.\n\nTo cope with these pressures, Zoho has scaled back its marketing expenditures and is postponing pay raises for employees. Vembu acknowledged the difficulty of this decision, expressing regret for not being able to prevent the lack of salary hikes this year. Despite the challenges, Vembu affirmed the company's commitment to preventing mass layoffs, emphasizing that the software job market is becoming increasingly tough.\n\nVembu further revealed that Zoho has not expanded its workforce in the past 18 months, signifying a prolonged hiring freeze at the Chennai-based software firm. He explained that most employees are aware of the circumstances and have shown their support during these trying times. Vembu concluded his message, expressing gratitude for the employees' understanding and requesting prayers for Zoho's ongoing reinvention, which he believes will determine the company's fate in the next 3-5 years.",
  "summary": "Sridhar Vembu, founder of Zoho, announced that employees will not receive annual salary hikes this year. This decision arises from increased costs associated with artificial intelligence and geopolitical challenges. Zoho has reduced its marketing budget and has not increased its headcount for 18 months. Vembu expressed gratitude for employees' understanding during this difficult period as he aims…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}