Zoho's Sridhar Vembu highlights India's struggle to generate jobs for its youth, attributing reduced IT hiring to increased spending on artificial intelligence and data centers.
Zoho founder Sridhar Vembu warns enterprise AI spending crowds hiring budgets. Zoho stopped adding headcount without layoffs, signaling sector freeze. For CTOs: AI capex now competes with hiring; shift to consolidation, retention, and skills investment over expansion.
Vembu's comments come amid rising automation and AI adoption
Aug 02, 2026
01:58 pm
What's the storySridhar Vembu, the founder and Chief Scientist of Zoho, has raised concerns over the impact of artificial intelligence (AI) on job creation in India's technology sector.
In a post on X, he emphasized that despite the productivity gains from AI, the industry is struggling to keep up with its growing workforce.
IT industry not creating new jobs, funds diverted to AI, data centre costs: Sridhar Vembu
‘We are not creating new jobs’: Zoho’s Sridhar Vembu flags AI’s impact on IT hiring
IT industry not creating new jobs, funds diverted to AI, data centre costs: Sridhar Vembu - The Economic Times
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In a post on social media platform X, Vembu noted that while the IT industry, including Zoho, has avoided large-scale layoffs, it…
Zoho Corporation's founder notes IT job growth is slowing significantly. Funds are now diverted to rising artificial…
