Technology
Zoho freezes 2026 salary hikes for 19,000 staff
The Indian Express··4d ago
Zoho is freezing annual salary hikes for all employees in 2026, co-founder Sridhar Vembu said on X. He cited a four-fold rise in server prices for data centres and higher AI usage costs. The firm has not grown headcount for 18 months and cut marketing. Vembu said Zoho will work hard to avoid mass layoffs as software demand stays uncertain.
Prism
What It Means For You
- Zoho told employees there will be no usual pay increase this year, Vembu wrote on October 12, 2026.
- He apologised for being unable to avoid the freeze while thanking staff who understand the situation.
- The company employs over 19,000 people worldwide, according to its official website.
What's Happening
- Vembu said AI has raised costs dramatically through higher server prices and rapidly rising AI usage.
- He also pointed to a challenging geopolitical backdrop for the business.
- He said the next 3 to 5 years will show whether Zoho's reinvention has worked.
Pressure Across Tech Payrolls
- The Express linked Zoho's step to wider cost cuts as firms fund AI infrastructure.
- TrueUp estimates put 2026 tech layoffs at 1,93,698 people impacted so far, at 677 people per day.
- Amazon last week announced cuts affecting at least 1,000 workers, the report said.
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