Zoom and Deloitte Are Cutting Parental Leave and PTO — A Sign Others May Follow

Major Employers Are Scaling Back Core Benefits

In a striking shift in employer power dynamics, two of America's most visible companies are quietly dismantling some of the workplace benefits workers prize most. Zoom has reduced paid parental leave from 22-24 weeks to 18 weeks for birthing parents, and from 16 weeks to 10 weeks for non-birthing parents. Deloitte, one of the Big Four consulting firms, is going further: for support staff in administrative services, IT, and finance roles, the consulting giant plans to cut parental leave, annual PTO, pension plans, and IVF funding—all starting in January.

These moves matter because they hit benefits that workers consistently rank as non-negotiable. According to a 2026 MetLife survey of 2,550 full-time US workers, paid parental leave, vacation time, and disability leave rank among the most valued workplace perks. More than three-quarters of survey respondents cited paid leave as a "must-have" benefit—yet many employers don't even offer it. That makes cuts from companies like Zoom and Deloitte particularly consequential.

"They could become precedent-setters," said Bobbi Thomason, professor of applied behavioral science at Pepperdine Graziadio Business School.

The Dominoes May Start Falling

What's most concerning to labor experts isn't what these two companies are doing today—it's what they signal about tomorrow. When marquee employers make bold moves, others follow. Laszlo Bock, the former head of human resources at Google who now advises startup founders, explained the cascading effect: "It legitimizes that action for everybody else." He points to recent history as proof. DEI policy rollbacks, return-to-office mandates, and other corporate reversals started with a few bold actors and became industry norm.

Thomason echoes this worry, saying that while Zoom and Deloitte may be outliers today, "they could become precedent-setters." The ripple effect could be especially damaging for workers with caregiving responsibilities—parents, guardians, and others who depend on paid time off to manage family obligations.

Workers Have Lost Their Leverage

The timing reveals why employers feel emboldened to make these cuts. The labor market has flipped. Job growth is stagnant, the US quit rate edged down to just 1.9% in February 2025, and workers have far fewer exit options than they did during the pandemic hiring boom. Joshua Lavine, CEO of Capitol Benefits, an insurance advisory firm, put it bluntly: "They don't have the leverage they did a few years ago."

With workers trapped in place by a weak job market, employers are seizing the moment. HR analyst Josh Bersin notes that companies view benefit cuts as a preferable alternative to layoffs for improving profitability. "If they feel that they can improve the profitability of the firm by getting rid of some of these benefits, they will," Bersin said. "It's definitely better than layoffs."

The Hidden Cost: Disengagement and Reputation Risk

But experts warn that employers may be making a short-sighted calculation. Christopher Myers, director of the Center for Innovative Leadership at Johns Hopkins Carey Business School, argues that benefit cuts can backfire even if workers don't immediately quit. Workers may respond by simply checking out—putting less effort into their jobs, which erodes productivity and innovation.

The numbers suggest this dynamic is already taking hold. Global employee engagement declined for a second consecutive year in 2025 to its lowest level since 2020, according to a newly released Gallup study. That's a warning sign that workers are already disengaging, even before these latest benefit cuts ripple across the economy.

Myers also cautions that when labor market conditions eventually shift back in workers' favor—and they historically do—companies that gutted benefits could face a talent exodus and lasting reputational damage. "Benefits will be a question mark for workers thinking about joining one company versus another," Myers said. The companies cutting perks today may find themselves struggling to attract top talent in tomorrow's tighter labor market.

The Broader Context: A Squeeze on All Fronts

Zoom and Deloitte's moves occur against a backdrop of employers squeezing employees in multiple ways. Pandemic-era perks like gym discounts are disappearing. Return-to-office mandates are spreading. Employers are raising performance expectations, tracking workers' AI usage, and laying off staff while demanding more output from those who remain. It's a coordinated tightening that workers, lacking bargaining power, cannot easily resist.

Deloitte framed its changes neutrally, saying its US business is "updating its talent structure to better reflect employees' diverse skills and the work they do for clients." But the underlying message is clear: the company is reshuffling who gets what benefits based on perceived value, effectively creating a two-tier benefits system.

"They don't have the leverage they did a few years ago," Joshua Lavine said of workers' negotiating position.

The real test will come in the months ahead. If other major employers follow Zoom and Deloitte's lead, workers may find that the most valued benefits—paid leave, parental leave, PTO—become increasingly scarce, even as employers boast about their commitment to work-life balance and employee wellbeing. The question isn't whether these cuts will happen; it's how many dominoes will fall.