Zoom Adjusts Parental Leave Policy Amid Rising Costs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy ZM?
Source: CNBC
- Parental Leave Reduction: Zoom has cut paid parental leave for birthing employees from 22-24 weeks to 18 weeks, while non-birthing parents now receive 10 weeks instead of 16, reflecting the company's strategy to control costs amid rising healthcare expenses.
- Market Comparison Pressure: As healthcare costs rise, more companies are scrutinizing employee benefits, particularly parental leave, with many focusing on this area for cuts as they set 2027 budgets, indicating competitive pressures within the industry.
- Policy Adjustment Trend: According to Gallagher's Shauna Bryngelson, many companies are reassessing their parental leave policies to better align with state-led paid leave programs, which typically offer around 12 weeks, prompting a search for a more sustainable balance within the 4-12 week range.
- Overall Industry Changes: Despite cuts from companies like Zoom and Deloitte, a Brown & Brown survey found that 71% of employers still offer paid parental leave beyond state requirements, with 69% planning to increase benefit amounts or durations, indicating that many firms are expanding their benefits in response to competitive pressures.
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Analyst Views on ZM
Wall Street analysts forecast ZM stock price to fall
20 Analyst Rating
12 Buy
7 Hold
1 Sell
Moderate Buy
Current: 108.360
Low
85.00
Averages
99.33
High
115.00
Current: 108.360
Low
85.00
Averages
99.33
High
115.00
About ZM
Zoom Communications, Inc. provides an artificial intelligence (AI) work platform for human connection. Zoom Workplace, the Company’s AI-powered, open collaboration platform built for modern work, enables us to streamline communications, increase employee engagement, optimize in-person time, improve productivity, and offer customer choice with third-party apps and integrations. Zoom Workplace, powered by Zoom AI Companion, includes collaboration solutions like meetings, team chat, phone, scheduler, whiteboard, spaces, Workvivo, and more. Its communication products include Zoom Meetings, Zoom Phone, Zoom Team Chat, Zoom scheduler, and Zoom mail and calendar. Its productivity products include Zoom Docs, Zoom Whiteboard, Zoom Clips, and Zoom Tasks. Its space products include Zoom Rooms, Zoom Workspace Reservation, and Zoom Visitor Management. It serves various industries, including education, financial services, government, retail, manufacturing and healthcare.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Comparison Pressure: As healthcare costs rise, more companies are scrutinizing employee benefits, particularly parental leave, with many focusing on this area for cuts as they set 2027 budgets, indicating competitive pressures within the industry.
- Policy Adjustment Trend: According to Gallagher's Shauna Bryngelson, many companies are reassessing their parental leave policies to better align with state-led paid leave programs, which typically offer around 12 weeks, prompting a search for a more sustainable balance within the 4-12 week range.
- Overall Industry Changes: Despite cuts from companies like Zoom and Deloitte, a Brown & Brown survey found that 71% of employers still offer paid parental leave beyond state requirements, with 69% planning to increase benefit amounts or durations, indicating that many firms are expanding their benefits in response to competitive pressures.
See More
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