Major Companies Scale Back Family and Leave Benefits

Two prominent companies, Zoom and Deloitte, are reducing key employee benefits, including paid parental leave and paid time off, a move experts warn could set a precedent for other employers.

The Benefit Reductions

Zoom has already reduced its paid parental leave benefits in 2024. Birthing parents now receive 18 weeks, down from the previous 22-24 weeks. Non-birthing parents now receive 10 weeks, down from 16 weeks. The company declined to comment on the changes.

Deloitte plans to reduce benefits for some workers starting in January 2025. The changes will mainly affect employees in support roles such as administrative services, information technology, and finance. Beyond parental leave, the firm also plans to reduce or eliminate annual paid time off, a pension plan, and IVF funding for some of these employees.

A Deloitte spokesperson said the company is updating its U.S. talent structure "to better reflect employees' diverse skills and the work they do for clients."

Why Benefits Matter to Workers

These cuts come at a time when such benefits are highly valued by the workforce. A 2026 MetLife survey of 2,550 full-time U.S. workers found that paid parental leave, vacation time, and disability leave are among the most valued workplace benefits. More than three-quarters of respondents cited paid leave as a "must-have" benefit.

Bobbi Thomason, a professor at Pepperdine Graziadio Business School, noted that reductions in paid time off can be particularly challenging for workers with caregiving responsibilities.

Expert Analysis on the Trend

Industry observers suggest these moves by large, influential companies could have a ripple effect across the corporate landscape.

Laszlo Bock, former Google head of human resources, said that when major employers make changes to benefits, "it legitimizes that action for everybody else."

Bobbi Thomason added that Zoom and Deloitte "could become precedent-setters" for other companies.

The shifting labor market may be a factor. Joshua Lavine, CEO of Capitol Benefits, observed that workers "don't have the leverage they did a few years ago" to push back against benefit reductions. The U.S. quit rate was 1.9% in February 2024, down from 2.0% in January, indicating a cooling job market.

For companies, cost control is a primary driver. Josh Bersin, a human resources analyst, said companies may scale back benefits to manage expenses, adding that this approach "is definitely better than layoffs."

Potential Risks for Employers

However, cutting benefits carries significant risks. Christopher Myers of Johns Hopkins Carey Business School warned that benefit reductions could lead to decreased employee effort and productivity. He also noted that if labor market conditions change, companies could face retention challenges and reputational damage.

This concern is underscored by a 2025 Gallup study which found that global employee engagement declined for a second year to its lowest level since 2020, suggesting many workforces are already under strain.