Zoho Limits Salary Growth as Server Prices Quadruple

In a post on the social platform X, Zoho co‑founder Sridhar Vembu stated that the company’s financial plan for 2024 does not include the usual salary uplift for its workforce. The primary driver is the rapid escalation of costs tied to AI and the hardware required to support it. Server prices have risen close to four times their previous levels, and the expanding AI workloads have amplified power and cooling expenses. Coupled with lingering global geopolitical uncertainty, these factors forced Zoho to cut back on its marketing allocation and hold off on pay raises. Vembu assured staff that the firm is prioritising job security and will evaluate the effectiveness of its strategic shift over the next three to five years.