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Zoho Cancels 2026 Salary Hikes Amid AI-Driven Costs

By Drooid · Oct 13, 2026, 10:30 AM UTC · How we work

Summary

Zoho Cancels Raises

Zoho cancelled its 2026 annual salary hikes for employees, citing cost pressures.
Vembu said a four-fold rise in data-center server prices and rapid AI usage drove the cost surge.
Zoho cut its marketing budget and has not added staff for 18 months to curb expenses.
Vembu pledged to avoid mass layoffs and launched a 3-5-year reinvention plan amid AI competition.

Summary

Vembu Slams UBI

Sridhar Vembu called universal basic income “unimaginative and dystopian” on October 12, 2026 X post.
He warned AI could endanger most intellectual jobs, especially software development and pure mathematics.
He suggested earning income through four domains: nature, nurture, culture, scripture.
He claimed UBI assumes monopolisation of productive assets, which states can already prevent.
He listed soil restoration, childcare, elder care, music, festivals, sports, and spiritual traditions as livelihoods.

History

Historical Context

The 2008 financial crisis, triggered by Lehman Brothers’ September collapse, drove the Federal Reserve to near-zero rates and a $700 billion Treasury bailout that saved firms like Goldman Sachs. In 2026, Zoho’s salary-freeze and Vembu’s AI-driven cost surge mirror those austerity moves, while Vembu’s UBI critique echoes Finland’s 2015 pilot, prompting regulators to scrutinize AI-induced labor shocks.

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Zoho Cancels Raises

Zoho cancelled its 2026 annual salary hikes for employees, citing cost pressures.
Vembu said a four-fold rise in data-center server prices and rapid AI usage drove the cost surge.
Zoho cut its marketing budget and has not added staff for 18 months to curb expenses.
Vembu pledged to avoid mass layoffs and launched a 3-5-year reinvention plan amid AI competition.

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