Source: Fortune
Summary
Teradata, a cloud software company, has told its 5,100 employees that there will be no annual salary raises in 2026, as the company shifts its budget towards AI investments. CEO Steve McMillan stated that the focus is to “win in the market with AI.” Similarly, TTEC has paused 401(k) matches for its 15,000 U.S.-based employees to invest in AI certifications and training. A recent survey found that over half of business leaders plan to cut employee compensation to fund AI investments.
Our Reading
The numbers tell one story.
Teradata’s Steve McMillan says the company will “win in the market with AI,” but at what cost to employees? TTEC’s decision to pause 401(k) matches is another example of companies prioritizing AI investments over employee benefits. The trend is clear: companies are cutting compensation to fund AI, but will it lead to long-term growth? The move may backfire, as high-performers seek better compensation elsewhere.
Companies are racing to stay ahead of the game, but at what cost to their workforce?
Author: Evan Null
