Teradata will skip 2026 raises, redirecting funds to AI
Teradata, a cloud software company, is skipping annual salary hikes for its 5,100 employees in 2026.
CEO Steve McMillan shared the news in a January memo, explaining that the money will be redirected to ramp up the company's investment in artificial intelligence and build stronger teams for future tech projects.
Teradata bonuses and equity remain
Employees won't get their usual 2% to 4% yearly raise (which wasn't always guaranteed anyway), but performance bonuses and equity-based compensation are still on the table.
This mainly affects regions where pay raises aren't legally required.
Teradata isn't alone: other tech firms like TTEC are also cutting back on perks to prioritize AI, and surveys show nearly all companies plan to spend more on AI this year as companies adjust budgets amid economic challenges.