I worked at a large consulting firm that went public a while back. As part of that process, they took away the candy bowls from the front office. Fast forward a few years after going public, benefits are cut to the bone. Vacation has been slashed in half.

Cutting costs (especially silly ones) is often a sucker's way to profitability. When people cut costs, they like to think they're being analytical. They often end up ignoring some indirect costs. A better model would include the expected cost in efficiency and human resources via departures and low morale.