Zoho Freezes Salary Hikes as Vembu Warns of Tough Times
Zoho founder Sridhar Vembu has warned employees of tougher business conditions ahead, saying the company will not provide salary hikes this year as it seeks to control costs and avoid layoffs.
Zoho Freezes Salary Hikes for 2026
Vembu told employees that the company is entering a difficult period marked by slower growth and rising economic uncertainty.
As part of efforts to preserve financial stability, Zoho has decided not to implement salary increases this year.
The move is intended to reduce expenses without resorting to large-scale workforce cuts.
Vembu Says Priority Is to Avoid Layoffs
Vembu said the company is trying to protect jobs and retain employees rather than follow the widespread layoff trend seen across the global technology sector.
He indicated that Zoho would continue to operate cautiously, focusing on productivity, profitability and disciplined spending.
The company has historically emphasised self-funded growth and has avoided relying heavily on outside capital.
Global Tech Slowdown Adds Pressure
The warning comes amid continued pressure across the technology industry, where companies are dealing with slower enterprise spending, intense competition and growing investment requirements linked to artificial intelligence.
Many technology firms have responded through hiring freezes, restructuring and workforce reductions.
Zoho’s decision to freeze hikes while attempting to avoid layoffs reflects a more conservative approach to managing the downturn.
The company has not indicated that layoffs are imminent, but Vembu’s message signals that cost control will remain a major priority in the months ahead.
