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Zoho employees may miss their usual salary hikes in 2026 as AI costs rise

Inc42 says founder Sridhar Vembu cited rising AI expenses and a fourfold increase in server prices.

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1 Source, 1h ago, first seen 1h ago

TLDR

Inc42 reports Zoho employees may miss their usual salary hikes in 2026 as AI costs rise. Founder Sridhar Vembu cited rising AI expenses and a fourfold increase in server prices. Zoho has also cut its marketing budget and reportedly kept its workforce unchanged for 18 months. Vembu raised concerns about software jobs but said Zoho would try to avoid mass layoffs.

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Inc42@Inc42💸 Zoho Employees May Miss Their Usual Salary Hikes This Year As AI Costs Rise. Founder Sridhar Vembu cited rising AI expenses and a fourfold increase in server prices behind the decision. Zoho has also cut its marketing budget and reportedly kept its workforce unchanged for 18 months. As businesses race to adopt AI, the cost of developing and running these features is rising. Vembu has also raised concerns about software jobs, while saying Zoho will try to avoid mass layoffs. 💡 Are workers bearing the cost of the AI boom? Tell us in the comments! #Zoho #SridharVembu #ArtificialIntelligence #TechIndustry #Reels #Inc42 #fyp1h
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    Inc42@Inc42💸 Zoho Employees May Miss Their Usual Salary Hikes This Year As AI Costs Rise. Founder Sridhar Vembu cited rising AI expenses and a fourfold increase in server prices behind the decision. Zoho has also cut its marketing budget and reportedly kept its workforce unchanged for 18 months. As businesses race to adopt AI, the cost of developing and running these features is rising. Vembu has also raised concerns about software jobs, while saying Zoho will try to avoid mass layoffs. 💡 Are workers bearing the cost of the AI boom? Tell us in the comments! #Zoho #SridharVembu #ArtificialIntelligence #TechIndustry #Reels #Inc42 #fyp1h
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