Not to say there aren't issues with this, but I think there is also something to be said around expectations. If your company is not healthy, perks tend to suffer because at the end of the day, they don't matter if you have to fire everyone. There's a certain type of individual who picks a company based on perks, and when a company is in trouble, you'd much rather have employees that are there for the business and the mission.

Now, that said, this is Silicon Valley. Free food and company phones are table stakes for any company wanting to hire and retain top tech talent. Combined with the fact that these two perks in particular enable improvements in employee productivity, and I think that would be a very dumb move.