Shocking From CEO: Mass Layoffs In Indian IT?

Sridhar Vembu Zoho Salary Hike Freeze and IT Jobs Warning

The Indian IT sector is already witnessing a period of turbulence with several companies starting to fire their employees at an elevated pace.

Some of this is due to the artificial intelligence development, while the other reason is that companies are looking to cut down on the budget massively.

This is substantiated by the latest comment from Sreedhar Vembu, who is the chief executive officer of Zoho, which is one of the biggest IT company in India.

According to the ZOHO CEO, the business outlook for software is uncertain and AI has raised costs dramatically with AI usage increasing rapidly, leading to much higher expenses, which we are trying to control.

At Zoho, Sreedhar says “We have cut down on our marketing budget. We have also told our employees that we cannot have our usual pay increase this year. I have apolgized for not being able to avoid this.”

Then comes the most challenging comment from the Zoho CEO as he said “We will work hard to avoid mass layoffs but the outlook for software jobs in general is grim. We have not been growing our employee count for 18 months now.”

When this comment is coming from one of the biggest IT companies in India and also globally, then this could potentially indicate an upcoming mass layoffs in Indian IT sector, which is going to be very bad news for everyone.