Cloud analytics and software company Teradata has suspended annual salary increases for its global workforce in 2026, redirecting those funds toward artificial intelligence investments a decision that affects approximately 5,100 employees worldwide, including staff at its India operations.
The move was communicated to employees through an internal memo issued by Chief Executive Officer Steve McMillan in January, according to a Business Insider report. In the memo, McMillan stated: “We will fund this AI investment by reallocating the budget from 2026 annual salary adjustments.” The company’s stated objective for 2026 is to strengthen its position in the AI market by investing in AI talent, expertise, and innovation. Employees cited in the report said annual increases at Teradata had typically ranged between 2% and 4%, though such increases were not guaranteed.
Despite the salary freeze, Teradata has not eliminated all forms of compensation growth. Employees may remain eligible for performance-linked bonuses, equity awards, and incentive-based rewards tied to individual and business outcomes. The policy applies in markets where local regulations do not mandate market-linked salary adjustments.
The Teradata decision reflects a pattern emerging across the technology sector, where companies are reallocating compensation budgets toward AI infrastructure and talent. Business process outsourcing company TTEC has similarly paused 401(k) retirement contributions for US employees through 2026, citing AI-related investment needs.
Teradata employs approximately 5,100 people globally across locations including India, the United States, and Europe, providing cloud database and analytics software to enterprise clients.
