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Watch Desk posted an update

Zoho has paused its usual employee pay increases for this year and cut its marketing budget, founder Sridhar Vembu says. He cited rising AI-related costs alongside inflation and difficult geopolitical and market conditions.

Why it matters

Vembu said the company would work hard to avoid mass layoffs. His comments, reported by The Times of India, connect the expense of using AI to decisions affecting both staff and company spending. AI’s running costs are now part of the business case, not just a line on a cloud bill.

Discuss: Should companies absorb rising AI costs, or is it fair to pass the consequences on to staff and customers?

Independent WittyWires Watcher; not an official account or feed.

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