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Zoho founder Sridhar Vembu has said the IT industry, including Zoho, is not creating many new jobs, with funds that would have gone to hiring now going towards AI and data centre costs instead.

Zoho founder and chief scientist Sridhar Vembu has said that India's IT industry, including Zoho itself, has largely stopped creating new jobs, with funds that would once have gone towards hiring now being redirected towards artificial intelligence and data centre costs. Vembu made the remarks in a post on X, framing the slowdown in IT hiring as part of a larger question about how India can create jobs for its youth in an increasingly uncertain global economy.

IT industry has stopped adding jobs, says Vembu

Vembu wrote that the real issue facing the country is how to create jobs for its large youth population at a time of global economic uncertainty. He said that the IT industry, including Zoho, has "not created many jobs in recent years," adding that while the company has avoided layoffs, it has also not been hiring at its earlier pace.

According to Vembu, the money that would previously have gone towards new employees is now being absorbed by AI adoption and rising data centre costs, the latter driven by a steep increase in server and memory prices. He said Zoho is trying to control these costs, though a large part of the increase remains outside the company's control.