Teradata skips employee raises to fund AI investments, reflecting broader corporate trend

Summary

Teradata CEO Steve McMillan announced the company will skip annual salary raises for its 5,100 employees in 2026, reallocating the budget toward AI investments instead. Employees typically receive 2-4% raises each year. This reflects a growing trend where companies are cutting compensation and benefits to fund AI initiatives, potentially using the strategy to create natural attrition without layoffs. Experts warn that many companies have "no idea what they're going to need in a workforce" once the AI transformation race settles.

Source

bskyTeradata skips employee raises to fund AI investments, reflecting broader corporate trendfortune.com