{"id":25256,"date":"2026-08-02T14:59:18","date_gmt":"2026-08-02T09:59:18","guid":{"rendered":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=25256"},"modified":"2026-08-02T14:59:18","modified_gmt":"2026-08-02T09:59:18","slug":"we-are-not-creating-new-jobs-zohos-sridhar-vembu-flags-ais-impact-on-it-hiring","status":"publish","type":"post","link":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=25256","title":{"rendered":"\u2018We are not creating new jobs\u2019: Zoho\u2019s Sridhar Vembu flags AI\u2019s impact on IT hiring"},"content":{"rendered":"<p><script>\r\n  atOptions = {\r\n    'key' : '644b717812d811d6a1c1fc5b6ccd6fa6',\r\n    'format' : 'iframe',\r\n    'height' : 90,\r\n    'width' : 728,\r\n    'params' : {}\r\n  };\r\n<\/script>\r\n<script src=\"https:\/\/www.highperformanceformat.com\/644b717812d811d6a1c1fc5b6ccd6fa6\/invoke.js\"><\/script>\r\n<br \/>\n<\/p>\n<div>\n<div class=\"storyParagraphFigure\">\n<p class=\"content\">India\u2019s technology sector may be gaining productivity through artificial intelligence, but it is struggling to create enough jobs for the country\u2019s growing young workforce. A prominent industry leader has warned that money once reserved for hiring employees is increasingly being spent on AI infrastructure and data centres.<\/p>\n<figure class=\"artImage leadImage\">\n<div class=\" \"><picture class=\"leadImageClass\"><source media=\"(min-width:768px)\" srcset=\"https:\/\/www.hindustantimes.com\/ht-img\/img\/2026\/08\/02\/960x540\/sridhar_vembu_1678899605722_1785655547545_7b58f53b-019a-48ac-aefc-d21e421a6206.jpeg\" alt=\"Sridhar Vembu said rising AI and data centre costs had slowed job creation in India\u2019s IT sector.\"\/><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.hindustantimes.com\/ht-img\/img\/2026\/08\/02\/400x225\/sridhar_vembu_1678899605722_1785655547545_7b58f53b-019a-48ac-aefc-d21e421a6206.jpeg\" alt=\"Sridhar Vembu said rising AI and data centre costs had slowed job creation in India\u2019s IT sector.\" title=\"Sridhar Vembu said rising AI and data centre costs had slowed job creation in India\u2019s IT sector.\" width=\"360\" height=\"202\" loading=\"eager\"\/><\/picture><\/div><figcaption class=\"\">Sridhar Vembu said rising AI and data centre costs had slowed job creation in India\u2019s IT sector.<span\/><\/figcaption><\/figure>\n<\/div>\n<p class=\"content \">(Also read: <a class=\"backlink\" target=\"_blank\" href=\"https:\/\/www.hindustantimes.com\/trending\/zohos-sridhar-vembu-says-ai-is-the-only-technology-that-will-matter-sparks-discussion-101784113486218.html\" data-vars-page-type=\"story\" data-vars-link-type=\"Manual\" data-vars-anchor-text=\"Zoho's Sridhar Vembu says AI is the 'only technology that will matter', sparks discussion\">Zoho&#8217;s Sridhar Vembu says AI is the &#8216;only technology that will matter&#8217;, sparks discussion<\/a>)<\/p>\n<p class=\"content \">Zoho founder Sridhar Vembu shared his concerns in a detailed post on X, highlighting the challenges facing the IT industry and the wider economy.<\/p>\n<div class=\"content \">\n<h2>\u2018IT companies are not creating enough jobs\u2019<\/h2>\n<p>\u201cThe real issue facing our nation is how to create jobs for our massive cohort of youth in this very uncertain global landscape. Sadly, the IT industry, including Zoho, have not created many jobs in recent years. We have not laid off people but we are not creating new jobs either,\u201d Vembu wrote.<\/p>\n<\/div>\n<p class=\"content \">He explained that funds which could previously have been used to recruit new employees were now being diverted towards AI and data centre expenses.<\/p>\n<p class=\"content \">\u201cThe money that would have gone to new employees is now going to AI and data center costs, the latter due to the steep rise in server and memory prices. We are trying to control those costs but a lot of that is out of our control,\u201d he added.<\/p>\n<p class=\"content \">Vembu also questioned whether the already crowded global software market needed significantly more products, even though AI was helping companies develop software faster. According to him, the industry\u2019s focus would gradually shift towards quality, reliability and brand value, while overall growth would become slower.<\/p>\n<div class=\"content \">\n<h2>Can other industries create enough employment?<\/h2>\n<p>The Zoho founder further noted that large and mid-sized enterprises had also redirected a significant portion of their technology spending towards AI. At the same time, rapidly growing AI companies were borrowing and investing heavily in capital expenditure without any certainty that they would generate enough profits to justify those investments.<\/p>\n<\/div>\n<p class=\"content \">(Also read:<a class=\"backlink\" target=\"_blank\" href=\"https:\/\/www.hindustantimes.com\/trending\/indianamerican-founder-slams-zoho-s-sridhar-vembu-over-delhi-protest-remarks-101784800056688.html\" data-vars-page-type=\"story\" data-vars-link-type=\"Manual\" data-vars-anchor-text=\"Indian-American founder slams Zoho\u2019s Sridhar Vembu over Delhi protest remarks\"> Indian-American founder slams Zoho\u2019s Sridhar Vembu over Delhi protest remarks<\/a>)<\/p>\n<p class=\"content \">\u201cWhat other industry can pick up the slack? Extensive automation means that large scale manufacturing produces few jobs,\u201d he wrote.<\/p>\n<p class=\"content \">Vembu said automation could make advanced products more affordable by reducing production costs. However, he argued that the bigger challenge was ensuring people had sufficient income to purchase those goods.<\/p>\n<p class=\"content \">\u201cThe \u2018only\u2019 question is how the economy is structured so people have the income to afford those affordable goods. That \u2018only\u2019 question, simple in theory, is not easy in practice,\u201d he said.<\/p>\n<p class=\"content \">Take a look here at the post:<\/p>\n<\/div>\n<div>\n<div class=\"content \">\n<h2>Internet users react<\/h2>\n<p>Shared on Sunday, the post has amassed more than 138,000 views. Reacting to it, one user wrote, \u201cAI is improving productivity, but job creation remains the real challenge.\u201d Another commented, \u201cThis is the uncomfortable reality of the IT sector today.\u201d A third person said, \u201cYes, I agree with you sir,\u201d while another observed, \u201cMore technology does not always mean more employment.\u201d<\/p>\n<\/div>\n<\/div>\n<script async=\"async\" data-cfasync=\"false\" src=\"https:\/\/pl30214220.effectivecpmnetwork.com\/9ab3d4df8a7e1a6171e16ddbf732cc19\/invoke.js\"><\/script>\r\n<div id=\"container-9ab3d4df8a7e1a6171e16ddbf732cc19\"><\/div>\r\n\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s technology sector may be gaining productivity through artificial intelligence, but it is struggling to create enough jobs for the country\u2019s growing young workforce. A prominent industry leader has warned that money once reserved for hiring employees is increasingly being spent on AI infrastructure and data centres. Sridhar Vembu said rising AI and data centre&#8230;<\/p>\n","protected":false},"author":1,"featured_media":25257,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.hindustantimes.com\/ht-img\/img\/2026\/08\/02\/1600x900\/logo\/sridhar_vembu_1678899605722_1785655547545_7b58f53b-019a-48ac-aefc-d21e421a6206.jpeg","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-25256","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-trending-viral-news"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/25256","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25256"}],"version-history":[{"count":0,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/25256\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/media\/25257"}],"wp:attachment":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25256"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}