Gadgets & Workspaces · Story 4

A CEO told employees they won't get raises in 2026 because the budget is going to AI

Cloud software firm Teradata has told employees not to expect annual salary raises in 2026, saying the money is being redirected toward AI initiatives. The announcement was shared on Reddit's r/technology forum, where it received over 22,000 upvotes and spawned heated discussion.

The decision illustrates a growing tension between corporate investment in AI and the financial expectations of existing employees. It raises broader questions about how companies prioritise technology spending over workforce compensation.

Key details

• Teradata is pausing annual raises for employees in 2026 and allocating the budget to AI instead.
• The story originated from a Business Insider report and was shared on r/technology with more than 22,000 upvotes.
• The CEO reportedly made the announcement directly to staff, which some commenters acknowledged as more transparent than typical corporate practice.

Discussion angles

• Several commenters questioned whether the CEO would also forgo a raise, suggesting inconsistency if leadership compensation was unaffected.
• One user shared that their company, despite record quarterly profits, told engineers there would be no promotions or raises this year due to budget constraints.
• Another commenter quipped that the employee would reciprocate by not increasing their work performance for the CEO.
• Sarcastic praise for the CEO's leadership style was offered, with one user noting that employees were unlikely to respond positively to the decision.