Recent decisions by Deloitte and Zoom to reduce paid parental leave for employees could indicate a larger shift in corporate benefits across the United States, according to labor market experts. These moves, announced last week, will take effect starting next year and may have long-term repercussions for the companies involved.
US Benefits Lag Behind Other Developed Nations
American workers already enjoy fewer benefits and labor protections than many of their counterparts worldwide, particularly in Europe. The United States remains the only developed country that does not guarantee paid parental leave. In contrast, all 37 other Organisation for Economic Co-operation and Development (OECD) countries offer at least some paid maternity leave, often funded through social insurance systems supported by employers, workers, and governments, as noted by the Bipartisan Policy Center.
For instance, Austria provides 16 fully paid weeks of maternity leave, while Denmark guarantees 22 weeks with an average payment rate of 48%, according to a Syracuse University report. Despite this, 13 US states and the District of Columbia have implemented mandatory paid leave systems, and most federal employees are entitled to up to 12 weeks of paid parental leave. Additionally, last year, bipartisan legislation was introduced in the US House to establish a grant program for states that create paid family leave initiatives through public-private partnerships.
Benefits of Parental Leave Extend Beyond New Parents
Advocates argue that parental leave policies not only support new parents but also generate broader societal benefits. A study from the Center on Poverty and Social Policy at Columbia University found that every $1,000 in taxpayer-funded paid parental leave yields over $20,000 in societal returns, including improved health outcomes for mothers and infants and higher earnings for children in adulthood.
“We have seen when people have access to paid parental leave through their companies or publicly, pretty dramatic improved outcomes from a health perspective and also from an economic perspective,” said Abby McCloskey, a nonresident fellow in economic studies at the Brookings Institution who has advocated for paid parental leave.
Details of the Cuts at Deloitte and Zoom
Deloitte, which employs over 470,000 people and generated more than $70 billion in revenue in fiscal year 2025, is reducing its paid parental leave, as reported by Business Insider. Starting in January 2027, employees classified under its “Center” designation—those in support roles such as administration, IT support, and finance—will see their parental leave cut from 16 weeks to eight weeks. Additionally, they will lose a $50,000 adoption and surrogacy reimbursement, which covered in-vitro fertilization treatment.
“Deloitte US is modernizing its talent architecture to provide a more tailored experience reflective of our professionals’ broad range of skills and the work they do serving our clients,” the company stated. “Benefits are regularly updated and will be tailored for a small subset of professionals to better align with the marketplace.”
At Zoom, which employs more than 7,400 people and generated over $4.8 billion in revenue in fiscal year 2026, birthing parents now receive 18 weeks of paid parental leave, down from 22 to 24 weeks, while non-birthing parents get 10 weeks, reduced from 16 weeks, according to Insider.
“Zoom is committed to employee wellbeing and providing support for new parents,” a spokesperson said in an email. “We regularly review our benefits to ensure they remain aligned with the marketplace and the long-term health and sustainability of our business. We are confident our overall compensation and benefits package – including our updated parental leave policy – remains competitive and in line with peers.”
Labor Market Trends Driving Reductions
Claudia Olivetti, a Dartmouth College economics professor, suggested that company leaders may have scaled back benefits due to a loosening labor market or low adoption of parental leave offerings. In 2025, the US economy experienced nearly zero job growth, and with more people seeking work, companies may feel less pressure to offer generous paid parental leave.
Despite the cuts, Zoom and Deloitte’s policies remain better than those of many companies. In March 2023, only 27% of civilian workers had access to any paid family leave through their employer, according to the US Department of Labor.
Potential Long-Term Consequences
Bobbi Thomason, a professor of applied behavioral science at Pepperdine Graziadio Business School, warned that cutting benefits could harm companies in the long run. “It feels like someone is just looking at a spreadsheet saying, ‘How can I get more hours?’” she said. But that approach overlooks the human element and the question of “what state are people going to be in when we’re in the office?”
Thomason added that by reducing leave, Deloitte “gives permission for other folks to roll things back.” However, McCloskey disagreed, noting that because Deloitte had offered more leave than many US companies, “I don’t actually worry about a contagion effect.”
Nevertheless, the cuts could ultimately backfire. “It’s unclear to me how much money you would be saving in exchange for the negative publicity, especially when we have fertility rates going down and people having fewer kids,” McCloskey said. Thomason emphasized the loss of long-term loyalty: “People may be staying in the office or staying in these roles, but these organizations have just burned a bridge, and I don’t think you’re going to be getting the best work from your employees.”
