Zoho Freezes Annual Salary Hikes for 2026 Amid Surging AI Infrastructure Costs

Zoho halted annual salary hikes for all employees in 2026 as surging infrastructure costs for artificial intelligence and an uncertain software market squeeze spending.

Co-founder Sridhar Vembu stated that the company has trimmed its marketing budget and maintained an 18-month hiring freeze to avoid mass layoffs amidst quadrupling server prices.

The decision reflects broader pressures across the technology sector as investments in AI workloads drive up operational expenses and challenge traditional software business models.