UPDATE: Major corporations are rapidly cutting gym benefits as they reevaluate their workplace wellness programs in response to soaring healthcare costs and economic uncertainty. New data reveals that corporate spending on wellness perks fell to an average of $1,103 per year per employee in 2025, a significant 20% decline from $1,366 in 2023.
As companies tighten their budgets, many are shifting focus from premium wellness offerings to more cost-effective options. Instead of lavish gym memberships at high-end facilities, employees may soon find themselves opting for budget-friendly alternatives like Planet Fitness. This shift reflects a broader trend as businesses seek to support employee well-being while controlling costs.
According to the Kaiser Family Foundation, annual family premiums for employer insurance coverage have surged by 6% to nearly $27,000 in 2025, with projections indicating they could reach $30,000 this year. Companies are under pressure to manage healthcare expenses, making wellness programs an easy target for cuts. Recent findings from a MetLife survey confirm that controlling healthcare costs is now the top priority for employers, overshadowing concerns about productivity and employee loyalty.
“Employers are going through every benefit in light of large increases in healthcare costs,” said Todd Katz, head of US group benefits at MetLife.
The shift comes as workers increasingly rely on affordable wellness apps like ClassPass and Wellhub, which provide access to fitness resources at a fraction of the cost. Cesar Carvalho, CEO of Wellhub, highlights that his service’s price point—just $2-$5 per employee per month—is particularly appealing during these challenging economic times.
Despite the growing investments in corporate wellness—estimated at nearly $95 billion globally in 2023—many employees remain unaware of the full extent of the benefits available to them. A recent Deloitte survey revealed that 68% of workers do not utilize the complete value of their company’s wellness resources due to the programs being perceived as “time-consuming, confusing, or cumbersome.”
The effectiveness of these wellness programs has also come under scrutiny. A study from Oxford University found that offerings like well-being apps and relaxation classes often fail to yield significant improvements in employee health or morale, with the exception of volunteer opportunities.
As organizations cut back on optional wellness benefits, they are forced to confront a larger issue: the holistic health of their workforce. Many employees feel that surface-level perks cannot adequately address deeper concerns such as stress, burnout, and overwhelming workloads.
With companies reevaluating what wellness means, industry analysts like Josh Bersin, CEO of The Josh Bersin Company, note that while wellness spending may have been overhyped in the past, the current climate demands a more strategic approach. “Companies are getting smarter at identifying and spending on what’s actually being used,” Bersin stated.
As this trend continues to evolve, employees need to stay informed about changes to their benefits packages. With the new focus on budget-friendly options, businesses aim to foster a healthier work environment while managing their bottom line.
In the face of these developments, workers are left to navigate a landscape where wellness perks are increasingly seen as optional. The question remains: will these changes ultimately lead to healthier employees or merely shift the burden of well-being back onto the workforce?
Stay tuned for updates as this developing story unfolds.
