Zoho founder Sridhar Vembu said his company, along with the rest of the IT industry, has largely stopped creating new jobs, with money that would have gone into hiring now consumed by AI and data centre costs. In a post, Vembu wrote that the IT industry, including Zoho, has not created many jobs in recent years, though Zoho has not laid off anyone. He attributed the shift to steep rises in server and memory prices, adding that Zoho is trying to control these costs but much is out of its control. Vembu argued that AI lets companies produce software faster, but the global market is saturated, shifting focus to quality and reliability with slower growth. Enterprise customers are redirecting IT budgets towards AI spending rather than fresh software purchases. The article notes Perplexity CEO Aravind Srinivas predicted Indian IT companies will hire fewer people as AI takes over coding work, Vinod Khosla said IT services will mostly disappear in its current form, and TCS has begun trimming its workforce. Vembu also said even the fastest-growing AI companies are borrowing and spending enormous sums on capital expenditure without clear prospects of generating profits to justify that spending.