Business · Updated 13 Oct, 11:25 am IST
Zoho freezes 2026 salary hikes as AI costs surge
Why it matters for readers: It explains why a big software company is pausing pay hikes and cutting costs: AI is expensive to run.
- Zoho has frozen annual pay raises for all employees in 2026.1
- The company cites rapidly increasing AI usage and a roughly four-fold rise in server prices as drivers of much higher expenses.1
- Zoho says it has not grown its employee count or hired new staff for the past 18 months.1
- Management has reduced the marketing budget and says it is working to avoid mass layoffs.1
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