Indian Engineer Alleges Company Made Staff Pay For AI Tools Without Refund, Calls It ‘Employee Extortion’
Indian engineer exposes startup forcing devs to pay for AI coding tools with no reimbursement.
An Indian software engineer has accused his company of exploiting employees by making them pay out of pocket for artificial intelligence tools required for official work. The shocking experience, shared on Reddit’s r/developersIndia forum, has ignited outrage online, with many users calling the company’s actions unethical and exploitative.
The engineer, who identified himself as a Software Development Engineer (SDE) at a product-based startup, revealed that the management recently asked developers to subscribe to Cursor IDE—a $20-per-month AI coding tool—to improve unit test coverage in the company’s codebase. Employees were assured that the amount would be reimbursed later, but the company allegedly went back on its promise once the payments were made.
“When we requested reimbursement, they suddenly imposed new conditions. Developers had to submit detailed reports proving how they used Cursor and justify its usefulness. Without that, they refused to refund the cost,” the post said. The engineer described the situation as being forced to fund company operations, adding, “We are being made to buy the subscription, use it for company work, and then beg for reimbursement.”
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The viral post triggered widespread discussions among tech professionals. Several users expressed sympathy and frustration over how easily employers escape accountability in such situations. Comments ranged from those calling the company’s behavior unethical to others offering practical tips to avoid being exploited by imposing employers.
As the post gained traction, users also suggested alternatives to paid AI tools, such as Gemini CLI, which offers free features for developers. Some even humorously advised taking sick leave to “recover” from workplace stress caused by such unfair practices. The growing backlash has reignited debate over companies’ misuse of power in the name of productivity and the ethics of shifting business expenses onto employees.
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