Zoho halts 2026 salary hikes, looks to ‘avoid mass layoffs’ amid surging AI costs
Zoho has frozen salary hikes for 2026 due to surging AI infrastructure costs and a challenging software market. Co-founder Sridhar Vembu noted a fourfold increase in server prices, prompting the company to cut its marketing budget and avoid mass layoffs. With over 19,000 employees, Zoho has not hired new staff in 18 months, reflecting a tough job market.