Many bankers and traders are no longer enjoying company perks like luxurious limousines, comfortable business class seats, and expensive steaks due to multibillion dollar write-downs. In order to cut expenses and improve profitability, trading desk heads and senior bankers are making cuts to small comforts. Ron Karp, a controller at Corporate Transportation Group, has noticed a decrease in demand for their services as companies are cutting back on luxury expenses for employees. The decrease in business activity at car services across the city has been noticeable in the last month, according to the speaker. While cutbacks are occurring in specific departments rather than across the entire company, as was the case earlier in the decade after the burst of the tech bubble, employees in those departments are still feeling the impact. Credit Suisse has decreased cell phone subsidies and eliminated car vouchers, Merrill Lynch has restricted business class travel for certain divisions, Goldman Sachs has stopped providing free soda, and JP Morgan has raised the qualifications for complimentary meals and transportation. Cutting back on small perks is a way for companies to reduce costs and also send a message to employees to be mindful of their expenses. According to equity analyst Brad Hintz, this move by banks is a signal to employees that the company is under pressure and they need to be more cautious with spending. The financial industry has been hit hard with over $300 billion in losses and layoffs, with companies like Merrill Lynch and Citigroup announcing significant staff reductions. Professor Roy Smith notes that in tough times, companies tend to increase layoffs and reduce operating costs to weather the harsh economic climate. Banks adhered to this procedure in various years including 1987, 1990-91, 1994, 1998, and 2000-2002, according to a statement made by him. The question that remains is whether the reductions will come to an end as the prospects for Wall Street firms improve, with the AMEX Security Broker Dealer Index .XBD increasing by more than 30 percent to 181 since hitting its lowest point on March 17. Managers are faced with making tough decisions and they typically prefer to cut back on luxuries rather than laying off employees so they can be prepared to capitalize on any market recovery. For example, at Credit Suisse, some departments have implemented a strict $30 limit on meals ordered by traders working late, as reported by a source familiar with the situation. Employees are no longer able to choose dinner from any restaurant in town. Instead of allowing employees to handle catering individually, all orders now go through SeamlessWeb, an online service, in order for managers to have better oversight. Some benefits, such as free personal cell phone bills and car vouchers, have been reduced or eliminated. Certain divisions at Merrill Lynch have removed first class and business class travel for domestic flights, with changes varying by team or division rather than being company-wide, according to spokespersons for Credit Suisse and Merrill. Even companies that have not been severely affected by the credit crunch are reducing their expenses. For example, at JPMorgan, employees are being required to work later in order to be eligible for a car ride home, and some must stay at work for a specific amount of time after ordering food on the company's account. Similarly, free soda has been discontinued on certain trading floors at Goldman Sachs. However, according to Jeff Visithpanich, a principal at compensation consultant Johnson Associates, excessive cost-cutting measures could have negative consequences for companies in the long run. Perhaps it appears favorable in theory, but in reality, what occurs is that many individuals end up taking extended breaks to go downstairs to Starbucks.