Teradata Halts 2026 Raises, TTEC Pauses 401(k) Matches to Fund AI Investments

Teradata informed its 5,100 employees in January that it would not grant annual salary raises in 2026. CEO Steve McMillan wrote in an internal memo that the company would fund AI investments by reallocating the budget previously used for those raises. ” Teradata employees have typically received raises of 2% to 4% each year.

January Machold, a Teradata spokesperson, said the company is “actively investing in AI” in both products and services, including a new autonomous agentic platform. -based employees in April that it would stop matching 401(k) contributions through the end of 2026. Chief people officer Laura Butler wrote in an April 30 memo that the pause would “protect the long-term strength” of the company.

TTEC stated that the change would provide flexibility to invest in AI certifications, training, AI-enabled tools, and automation. A Resume Builder survey of 866 business leaders found that more than half plan to cut employee compensation to redirect spending toward AI. Companies in the survey reported reducing bonuses, equity awards, and raises for this purpose.

Stacie Haller, chief career advisor at Resume Builder, said companies are cutting compensation without fully considering long-term workforce needs. “There is such a huge push for companies to stay cutting edge and implement AI, and they think it’s going to cut back their workforce and save all this money,” she said.

” Employment attorney Jared Pope said the shift reflects a broader change in how companies tie pay to short-term business impact rather than longevity.

34 trillion in 2027, according to Gartner.