‘We are not creating new jobs’: Zoho’s Sridhar Vembu flags AI’s impact on IT hiring

Zoho founder Sridhar Vembu said AI and data centre costs have slowed new hiring across India's IT sector.

Vembu wrote on X that IT companies, including Zoho, are not creating new jobs, though they have not laid off people.

Funds previously used for new employees are now going to AI and data centre expenses, driven by rising server and memory prices.

Vembu noted that large and mid-sized enterprises have redirected significant technology spending towards AI.

He questioned which other industries could create enough employment, as automation reduces jobs in manufacturing.