Zoho freezes annual appraisals as founder urges Indians abroad to return

Zoho founder Sridhar Vembu urged Indians in the US to return to India after the US suspended Green Card processing for eight major IT companies, including Microsoft.

Four days later, he said Zoho employees will not receive their usual pay increase this year.

Vembu attributed the decision to rising costs linked to artificial intelligence and a difficult geopolitical climate.

He said Zoho had cut its marketing budget, had not grown its workforce for 18 months and would work to avoid mass layoffs.

The timing drew criticism on social media, with users questioning how returning workers would find opportunities if Zoho itself was holding back pay increases.

Some commenters defended Vembu for speaking openly about the company’s difficulties.

Vembu said people should return if another country tells them to leave, arguing that there are many things to build in India.

He said the next three to five years will determine how Zoho’s reinvention works.