Cuts to workplace perks came first. Paid time off may be next.
In the latest sign of employers flexing their power, at least two high-profile names are shrinking variations of the highly popular benefit. Zoom this year reduced the number of weeks of paid parental leave it offers, while Deloitte is also planning to do the same — and more — for select groups of workers starting in January.
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The changes could be an early signal of a broader shift: In a tight labor market, even highly valued benefits may be on the chopping block. Workers have fewer options for job-hopping, and once a few marquee employers make bold moves, others may be inclined to follow.
“It legitimizes that action for everybody else,” said former Google head of human resources Laszlo Bock, who now advises startup founders.
For example, he said this has happened in recent years with the adoption and rollback of DEI policies and the return-to-office push.
While Zoom and Deloitte may be outliers today, “they could become precedent-setters,” said Bobbi Thomason, professor of applied behavioral science at Pepperdine Graziadio Business School.
‘A must-have’
At Zoom, birthing parents now get 18 weeks of paid parental leave, down from 22 to 24, and non-birthing parents get 10 weeks, down from 16, a spokesperson for the video-conferencing company confirmed to Business Insider.
Deloitte’s reduced parental leave benefits will mainly affect workers in support roles, such as administrative services, information technology, and finance. The Big Four consulting firm also plans to pare back or cut annual PTO, a pension plan, and IVF funding for some of those individuals, Business Insider recently reported.
The changes are notable given that paid parental leave, vacation time, and disability leave are among the most valued workplace benefits, according to a 2026 MetLife survey of 2,550 full-time US workers.
While many employers don’t provide any paid parental leave, more than three-quarters of respondents cited paid leave in general as a “must-have,” the findings show.
Reductions in paid time off can be especially challenging for workers with caregiving responsibilities, said Thomason.
Zoom declined to comment. A Deloitte spokesperson previously told Business Insider that its US business is updating its talent structure to better reflect employees’ diverse skills and the work they do for clients.
Lacking leverage
Zoom and Deloitte’s actions come at a time when many employers have been prioritizing measurable results over loyalty, raising performance expectations, and tracking workers’ AI usage. Pandemic-era perks like gym discounts are declining, in-office mandates are widespread, and layoffs continue to pile up.
Meanwhile, job growth has been stagnant, and many workers are staying put. The US quit rate edged down to 1.9% in February from 2.0% in January, according to the latest data available from the Bureau of Labor Statistics.
What this means is that workers aren’t well-positioned to push back against employers paring down core benefits, said Joshua Lavine, CEO of Capitol Benefits, an insurance advisory firm.
“They don’t have the leverage they did a few years ago,” he said.
‘Better than layoffs’
With workers in a less powerful position, companies may opt to scale back employee benefits to rein in costs, said Josh Bersin, a human resources analyst and consultant.
“If they feel that they can improve the profitability of the firm by getting rid of some of these benefits, they will,” he said. “It’s definitely better than layoffs.”
Trimming benefits, however, can backfire on employers—even if workers are unlikely to quit in droves due to the tight labor market, said Christopher Myers, director of the Center for Innovative Leadership at the Johns Hopkins Carey Business School.
They could respond instead by putting less effort into their jobs, which could dent productivity, he said. In 2025, global employee engagement declined for a second year to its lowest level since 2020, according to a newly released Gallup study.
If the pendulum swings back in workers’ favor, companies could face a tougher time retaining top talent, and their reputations could take a hit, Myers added.
Benefits “will be a question mark for workers thinking about joining one company versus another,” he said.
