Many bankers and traders are no longer enjoying company perks like fancy cars, luxurious seats, and expensive meals due to multibillion dollar losses. Trading desk heads and senior bankers are cutting back on small comforts to save money and improve profits. According to Ron Karp, a controller at Corporate Transportation Group, the demand for their services has decreased as companies are letting go of employees and no longer willing to provide luxury transportation for them. The decrease in business activity at car services throughout the city has been noticeable in the last month, according to him. Instead of companywide cutbacks like those seen in the early 2000s after the tech bubble burst, reductions are now happening in specific departments. However, employees in these affected departments are still feeling the impact. Credit Suisse has made cuts to cell phone subsidies and eliminated car vouchers. Merrill Lynch has restricted business class travel for certain divisions, Goldman Sachs has discontinued free soda, and JP Morgan has increased the qualifications for complimentary meals and transportation. Cutting back on small benefits helps save money, but it also sends a message to employees to be mindful of their expenses. Banks reducing perks is a way to remind workers to be cautious with spending, especially during tough times. With financial institutions facing significant losses, layoffs have become common, with big cuts announced recently. It is typical for companies to increase layoffs and reduce costs during challenging economic climates. Banks have adhered to this procedure in various years, including 1987, 1990-91, 1994, 1998, and 2000-2002, according to him. The question remains whether these reductions will cease as the prospects for Wall Street firms improve, as the AMEX Security Broker Dealer Index .XBD has increased by more than 30 percent to 181 since hitting a low on March 17. In times of financial constraint, managers tend to prioritize cutting luxuries over laying off staff in order to be prepared for any potential market recovery. For example, at Credit Suisse, certain departments have implemented a strict limit of $30 for meals ordered by traders working late, as reported by a reliable source. Employees are no longer able to choose dinner from any restaurant in town. Instead of allowing employees to handle catering individually, all food orders are now managed through the online service SeamlessWeb in order for managers to have better oversight. Some perks, such as free personal cell phone bills and car vouchers, have been reduced or eliminated. At Merrill Lynch, certain divisions have downgraded employee travel by removing first class and business class options for domestic flights. Credit Suisse and Merrill spokespeople stated that these changes vary by team or division rather than being company-wide. Even companies that were not severely affected by the credit crunch are reducing their expenses. For example, at JPMorgan, employees may need to work later to qualify for a ride home, and some must stay at work for a specific amount of time after ordering food on the company's account. Goldman Sachs recently stopped offering free soda on certain trading floors. However, Jeff Visithpanich from Johnson Associates warns that excessive cost-cutting may have negative consequences for companies in the long run. Perhaps it appears favorable in theory, but in reality, what occurs is that a group of individuals start taking extended breaks to go down to Starbucks.