Recent decisions by US firms Deloitte and Zoom to reduce paid parental leave could signal a broader trend of benefit cuts in corporate America, according to labour market experts. The companies announced last week that they will trim parental leave and other perks starting in 2027 and 2026 respectively.
Experts argue that while the cuts may save money in the short term, they could ultimately harm productivity and employee morale. Bobbi Thomason, a professor at Pepperdine Graziadio Business School, said the moves appear to overlook the human impact, focusing only on spreadsheets.
The United States remains the only developed country without guaranteed paid parental leave. However, 13 US states and the District of Columbia have enacted mandatory paid leave, and federal employees receive up to 12 weeks. Advocates point to significant societal benefits: a Columbia University study found that every $1,000 in taxpayer-funded paid leave generates over $20,000 in benefits.
Deloitte, with over 470,000 employees and $70bn in revenue, will cut parental leave for support staff from 16 to eight weeks and eliminate a $50,000 adoption and surrogacy reimbursement. Zoom, with 7,400 employees and $4.8bn in revenue, will reduce birthing parent leave from 22–24 weeks to 18, and non-birthing parent leave from 16 to 10 weeks.
Both companies stated they regularly review benefits to align with the marketplace. Deloitte described the changes as modernising its talent architecture, while Zoom emphasised its commitment to employee wellbeing. Critics remain sceptical, warning that cutting such benefits may backfire as workers seek more supportive employers.
