"Deloitte and Zoom are among the largest companies to grab headlines recently with pullbacks on family leave. Deloitte sought to "better align with the marketplace," and it's also trimming vacation time and ancillary health perks like fertility support. TTEC, a customer experience technology firm, told Business Insider last week that it paused 401(k) matching for U.S. employees this year in part due to spending on AI tools, automation and training."
"Experts are largely blaming cuts on double digit year-over-year jumps in their health benefit costs. "I think reality is setting in," said Rich Fuerstenberg, a senior partner on Mercer's Health & Benefits Practice referring to companies need to reevaluate the total benefits they can truly afford. "There's more scrutiny, and it's 'Why are we over market?What am I getting from these programs?'""
"A survey of 500 U.S. business leaders by ResumeBuilder.com conducted in March found more than half indicated they were cutting back benefits (53%) as well as bonuses (61%) and raises (53%) to help fund AI investments. A Mercer 2026 CFO Perspective on Health survey found 38% of chief financial officers said they are cutting back benefits elsewhere because of the jump in health costs in the past two years."
"Drug spending alone jumped from 21% of companies' total health care spending to 24% in a three year period, said Jim Winkler, chief strategy officer for the Business Group on Health. "Health care costs, which feel out of control, are squeezing o"
Companies are reducing benefits that became common during COVID and workforce shortages, including family leave, vacation time, fertility support, and retirement plan matching. Deloitte and Zoom have announced pullbacks, citing alignment with the marketplace and cost pressures. TTEC paused 401(k) matching for U.S. employees, attributing the change to spending on AI tools, automation, and training. Health benefit costs are rising sharply, with double-digit year-over-year increases driving scrutiny of benefit value and affordability. Surveys show many business leaders are cutting benefits, bonuses, and raises to fund AI investments. CFOs report cutting benefits elsewhere because health costs have surged over the past two years, including increased drug spending.
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