US firm stops 5,100 employees' annual increment, CEO says 'Will use funds for AI instead'

Teradata, a US-based cloud software firm, has told its 5,100 employees they will not receive annual salary hikes in 2026. In a memo, CEO Steve McMillan said the company's priority for the year is to "win in the market with AI". He further said the company will fund AI investments by reallocating the budget from annual salary adjustments.