Zoho’s CEO posted a terse message on LinkedIn, urging NRIs to come back to India after the U.S. administration suspended green‑card processing for eight major IT firms on 12 March 2024. The same day, the company announced it would forgo employee appraisals for the year, a decision that drew a flood of criticism for what many saw as a double standard. Social‑media users demanded he explain how he could ask expatriates to return while his own staff were denied salary hikes.
Vembu replied that the tech sector is under siege from AI‑driven cost spikes – server prices have quadrupled, and AI usage has surged, pushing operating expenses to unprecedented levels. He added that geopolitical tensions and a reduced marketing budget left Zoho with no room to grant the usual appraisals. The company has not increased headcount in 18 months, he said, and is trying to avoid mass layoffs.
The call to NRIs has sparked debate over the real prospects for Indians who might choose to stay. Commenters questioned whether a saturated software market and a shaky business climate could truly support the influx of talent Vembu’s plea implied. Others defended the founder’s stance, noting that patriotism alone cannot substitute for a healthy ecosystem.
Employees at Zoho, however, expressed understanding. Vembu thanked them for their patience, saying most of the workforce knows the company’s situation and is grateful for the transparency. The announcement was framed as a temporary measure while the firm works to reinvigorate itself.
Looking ahead, Vembu warned that the next three to five years will decide whether the company’s reinvention succeeds. He reiterated that layoffs are unlikely, but the broader software job outlook remains grim. The company’s next steps will involve tightening costs and seeking new growth avenues while keeping the workforce on board.