Zoho Cancels Employee Appraisals Amid Rising AI Costs
· Business · India Today, Indian Express
Zoho founder Sridhar Vembu has announced that the company will not conduct employee appraisals this year. The decision comes as the firm faces rising expenses, particularly due to a four-fold increase in server costs required for data centers and increased AI usage. Vembu stated that the company is working to avoid mass layoffs, noting that the employee count has remained stagnant for 18 months. He confirmed that marketing budgets have been cut to manage the financial strain caused by the current software industry outlook and geopolitical challenges. The company has not provided a timeline for when appraisals might resume.
Why it matters
The move reflects the financial pressure tech companies face as they balance the high costs of AI infrastructure with the need to maintain workforce stability.
Read the original report — India Today
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