Archive · 3 Aug 2026
AI Spending Cuts IT Hiring, Zoho Founder Says
Sridhar Vembu, the boss of a big Indian software company called Zoho, said that a lot of money that used to pay for new workers is now being used to build computers that help artificial intelligence (AI) work.
Because of this, the company and many others are not hiring many new people.
He worries that this could make it hard for young people in India to find jobs.
Vembu also said that the cost of the machines and memory needed for AI is very high, which makes it even harder to hire.
He thinks that maybe the government could give people money or help so that everyone can still earn a living even if fewer jobs are created.
Zoho founder Sridhar Vembu says AI spending is diverting funds from hiring.
Vembu notes that server and memory price hikes are a key factor.
India’s IT job openings fell 6% year‑on‑year in August 2026.
Major tech firms like Infosys, Oracle, Microsoft, and Meta have cut headcount.
Vembu suggests Universal Basic Income or similar welfare measures to offset job losses.
- Who
- Sridhar Vembu, co‑founder of Zoho
- What
- Claims AI spending is diverting funds from hiring, stalling IT job growth
- When
- Statements made in August 2026
- Where
- India, discussed on X and in industry reports
- Why
- Rising server and memory costs and a strategic focus on AI infrastructure
- Key Figure
- Sridhar Vembu
- Company
- Zoho
- Industry
- Information Technology
- Main Concern
- AI budget shift reducing new hires
- Job Market Trend
- IT openings fell 6% YoY in August 2026
