CEO to staff: You’re not getting a raise. We’re spending on AI instead.
“AI isn’t just coming for your job. It’s coming for your pay.
As companies look for cash to fund their AI transformations, some are finding it by shrinking employee benefits and compensation packages.
Teradata, a global cloud software company, told its 5,100 employees in January not to expect an annual salary raise this year as it reallocates the budget toward AI investments, according to an internal memo seen by Business Insider and not previously reported.
Teradata’s focus for 2026 is to “win in the market with AI,” CEO Steve McMillan said in the memo, and to help achieve that, the company will be increasing investment in AI talent and expertise.
“We will fund this AI investment by reallocating the budget from 2026 annual salary adjustments,” said McMillan.”