The most valuable advantages are also in the cutting block

• Zoom is scaling back paid parental leave, while Deloitte is trimming PTO and other offers for select workers.

• Many employers have reduced perks like gym discounts to rein in costs.

• Once a few large employers take action, “it legitimizes that action for everyone else,” said Google’s former human resources chief.

Cuts to workplace allowances came first. Paid time may be another.

In the latest sign that employers are shifting their power, at least two high-profile names are reducing highly popular benefit differentials. Zoom has reduced the number of weeks of paid parental leave this year, while Deloitte plans to do the same — and more — for select groups of workers starting in January.

The changes could be an early sign of a broader shift: In a tight labor market, even high-value benefits could be on the chopping block. Workers have fewer options for job-hopping, and once a few marquee employers make bold moves, others may be willing to follow.

“It legitimizes that action for everyone else,” said Laszlo Buck, a former human resources chief at Google who mentors startup founders.

For example, he said, with the adoption of DEI policies in recent years and the rollback and return-to-office push.

While Zoom and Deloitte may be outliers today, “they can become precedent-setters,” said Bobby Thomson, professor of applied behavioral sciences at Pepperdine Graziadio Business School.

At Zoom, birth parents now get 18 weeks of paid parental leave, down from 22 to 24, and non-birth 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 primarily affect those working in support roles such as administrative services, information technology, and finance. The Big Four consulting firm also plans to roll back or cut annual PTO, pension plans, and IVF funding for some of those people, 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 U.S. workers.

While many employers do not offer any paid parental leave, more than three-quarters of respondents cited paid leave as a “must” in general.

Cuts to paid time off can be especially challenging for workers with caregiving responsibilities, Thomason said.

Zoom declined to comment. A Deloitte spokesperson previously told Business Insider that its U.S. business is updating its talent mix to better reflect the diverse skills of employees and the work they do for clients.

Zoom and Deloitte’s actions come at a time when many employers are prioritizing measurable results over loyalty, raising performance expectations and tracking workers’ use of AI. Pandemic-era perks like gym discounts are dwindling, office mandates are widespread, and layoffs continue to pile up.

Meanwhile, job growth has stalled, and many workers have been laid off. According to the latest data available from the US Bureau of Labor Statistics, it fell to 1.9 percent in February from 2.0 percent in January.

What that means is that workers aren’t in a good position to push back against employers who cut core benefits, said Joshua Levine, CEO of insurance advisory firm Capital Benefits.

“They don’t have the leverage they did a few years ago,” he said.

With workers in less powerful positions, companies may choose to scale back employee benefits to rein in costs, said HR analyst and consultant Josh Bursin.

“If they think they can improve the firm’s profitability by getting rid of some of these benefits, they will,” he said. “It’s certainly better than layoffs.”

Trimming benefits, however, could backfire on employers — if workers are unlikely to quit due to a tight labor market, said Christopher Myers, director of the Center for Innovative Leadership at Johns Hopkins Carey Business School.

They may respond by putting less effort into their work, which can reduce productivity, he said. In 2025, global employee engagement will drop for the second year to its lowest level since 2020, according to a newly released Gallup study.

If the pendulum swings back in favor of workers, 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.

Read the original article on Business Insider