KEY POINTS:
The credit crunch is becoming the Grinch that stole Christmas.
As concern about the economy grows, firms are tightening their belts over the annual celebration, with one major company canning the event altogether.
Others have opted for the traditional Kiwi barbecue over posher catered events.
But the offices of TelstraClear will not echo with the sound of Yuletide celebration, as the telco had cancelled the Christmas party because of the recession.
Spokesman Chris Mirams said the cancellation had been explained to staff, who had yet to complain.
"We just felt that, given a lot of customers, both businesses and consumers, are facing tough times it just wasn't appropriate to be celebrating," he said. "You can't escape what's happening in the world and in New Zealand."
It seems that rivals Vodafone and Telecom can.
Vodafone, renowned for elaborate Christmas parties, is also celebrating its 10th birthday, and has hired the Vector Arena and bands Supergroove and Shihad.
Telecom is having "A Night in the Orient" parties, one each in Wellington, Auckland, Christchurch and Hamilton.
It will not be small drinks around the water cooler either, with SkyCity hosting Auckland staff and Wellington employees invited to the TSB Bank Arena.
The Yellow Pages Group will host a 12,000-guest party at Vector Arena where Dave Dobbyn, Supergroove, Hello Sailor and Opshop will entertain.
Other companies have also cut down on the glitz.
Recruitment company Robert Walters held elaborate functions in the past, including a James Bond fancy dress complete with an Aston Martin DB9.
This year, they are going to dinner. Marketing manager Lucy Nichols said, given the economic climate, more firms were taking the "corporate responsibility" approach.
"It's not so much scaling down; it's more around being mindful of not everyone being so fortunate."
The company is cutting Christmas cards in favour of an electronic seasonal message, explaining that Robert Walters is instead donating money to the Wellington and Auckland City Missions.
Other businesses are scrapping the party in favour of staff gifts.
Byron Ballan, managing director of Cardy Business, is considering thank-you hampers for his staff of 50. In the past the company held functions such as dine-and-dances and staff picnics.
"The issue is one of being sensible with the money."
Because the economic conditions were hitting people's disposable incomes, Ballan said a hamper could be a more practical gift.
"What we are proposing may be of more benefit to people."
Councils and government departments are also careful not to throw money around.
At Auckland City Council, about 2200 staff are given a $35 a head subsidy for each department's Christmas party. Employees decide how to spend the money.
The Ministry of Social Development is even more frugal, with a maximum subsidy of $20. The subsidy cannot be spent on alcohol with staff having to pay for that.
Businesses in the party and function industry have also noticed a change in attitudes.
Graeme Peet, owner of the Spit Roast Catering Company, has seen a reduction in the size of staff Christmas parties.
"Certainly in a lot of cases the dollar is being watched."
While most of the big firms are still holding Christmas parties, Total Events owner Malcolm Jordan said businesses were more conscious of the money and were cutting back.
He remembered a similar pattern during the early 1990s.
