Zoho founder Sridhar Vembu has stirred up Silicon Valley’s values debate with pointed remarks that question corporate priorities.
Taking to X , Vembu asked, “Am I a socialist for focusing on the most important asset of any company – their own people and their well-being?” His comment followed recent layoffs at Freshworks, his competitor, and what he saw as a troubling trend in the tech world.
In a post on November 8, Vembu took an indirect jab at Freshworks, stating that any company with “over a billion dollars in the bank” yet focused on “shareholders by undertaking layoffs and announcing a buyback” should not expect loyalty from its workforce.
The implicit critique touched on Freshworks’ CEO Dennis Woodside’s recent announcement that the Nasdaq-listed SaaS firm would reduce its workforce by 13%, impacting approximately 660 employees, as part of its focus on “efficiencies” and “reducing complexities.”
Vembu then cited Nvidia and AMD as examples of companies that thrived by valuing their engineers, many of whom stayed long-term to develop deep tech. He noted that the CEOs of these firms come from Taiwan, which has built “incredible deep tech companies” like TSMC by prioritizing talent. “This is how real capital building works,” Vembu wrote, adding that Taiwan’s model contrasts starkly with U.S. tech firms that focus on appeasing Wall Street.
His criticism extended to Intel, which he said had prioritized Wall Street over employee retention, leading to losses against competitors like TSMC, AMD, and Nvidia. Intel’s strategy, he argued, was not “capitalism” but rather “late-stage hedge fund and PE-driven financialism.”
Addressing a broader critique of American corporate culture, Vembu questioned the values underlying U.S. capitalism: “What we have today in America is ‘we bet other people’s money, and if we win, we keep a lot of the gains, and if we lose, we run to the Fed to bail us out,’” he wrote. Vembu argued that this brand of capitalism is unsustainable, potentially leading the country toward civil conflict.
Referring to the collapse of Silicon Valley Bank last year, he noted that many tech entrepreneurs applauded the bailout, conveniently ignoring the “capitalist” values they preach. “Should India import this system? Refusing to do that is ‘socialism’? Practise some real capitalism first – take care of your people well. That is also our Dharma,” he added.
