Zoho skips pay hikes, cites raised AI costs and geopolitical backdrop

Synopsis In a recent statement, Zoho's founder Sridhar Vembu announced that the company will not implement salary hikes for its employees. This decision stems from the soaring costs associated with artificial intelligence and notably increased server prices. Vembu also pointed to the current challenging geopolitical circumstances affecting their financial strategy. Despite a steady growth rate of approximately 12 percent, the prospect of layoffs looms as new revenue streams have diminished significantly. Sridhar Vembu, founder of enterprise software maker Zoho, announced on Tuesday that the company is skipping salary hikes for its employees this year. Vembu cited rising costs due to artificial intelligence (AI) usage and the challenging geopolitical situation as the main reasons for the decision.In a post shared on his X handle, Vembu explained that employing AI in business processes has dramatically raised the costs incurred by the business, Now Playing