By Polly Thompson
Publication Date: 2026-06-04 09:00:00
AI isn’t just for your job. It comes for your reward.
As companies look for cash to fund their AI transformations, some are finding it by cutting employee benefits and compensation packages.
Teradata, a global cloud software company, told its 5,100 employees in January that they should not expect an annual salary increase this year due to the reallocation the budget for AI investments, according to an internal memo seen by Business Insider and not previously made public.
Teradata’s focus for 2026 is to “win in the market with AI,” CEO Steve McMillan said in the memo. To achieve this, the company will increase its investment in AI talent and expertise.
“We will fund this AI investment by reallocating budget from annual salary adjustments for 2026,” McMillan said.
Teradata did not comment on the budget decision. A spokesperson told Business Insider that the company is actively investing in AI to innovate its products and services.
Two US-based Teradata…
