Tough times take a big bite out of the office-party ritual

NEW YORK - In this brutal season of cutbacks, the office holiday party is getting downsized, too.

From American Express to MTV to the Bend, Ore., city government, employers are canceling Christmas celebrations because of the gloomy economy. Or, at some workplaces, last year's catered affair is this season's potluck.

"It's grim," said Daniel Briones, president of the National Association of Catering Executives. He called the drop in business the worst since 2001, when the holidays unfolded in the shadow of the Sept. 11 terrorist attacks.

For some companies, this is about appearances as much as money. No firm wants to be pilloried for plowing cash - in some cases, taxpayer dollars - into ice sculptures and raw bars while workers fear for their jobs and shareholders for their investments.

"Even if they can afford it, nobody wants to be seen as being profligate," said New York restaurant magnate Danny Meyer.

Canceling a party can sap morale. But some employees say they don't mind having a more modest celebration in tough times.

"You don't want to be eating your steak and thinking that it could have been in your wallet instead," said Eric Bolesh, 29, who works at a North Carolina firm.

One in five companies is scuttling or scaling down its year-end bash, according to the workplace consulting firm Challenger, Gray & Christmas Inc. Surveys by the catering executives group and the trade magazine Special Events found a majority of event planners are losing at least 10 percent of their corporate holiday business.

"In the current economic environment, it really is a case of just being careful with our spending," said American Express spokeswoman Joanna Lambert. The credit card giant, which plans to cut 10 percent of its 65,000 employees, has even canceled next year's party.

At least one corporation is offering a yuletide trade-off: Employees at Viacom Inc., where quarterly profits have plunged 37 percent, will get two extra paid days off instead of invitations to chic parties hosted by MTV and Paramount Pictures.

Other companies are substituting hors d'oeuvres for sit-down dinners, shortening party hours, and limiting bar service to beer and wine, said Greg Jenkins, a partner in a catering firm in Long Beach, Calif.

John A. Challenger, Challenger, Gray & Christmas's chief executive, warned that paring down a party may make sense, but canceling it can be damaging. A celebration can help workers get to know and trust one another in an era when turnover can make that difficult, he said.