Firms call off Christmas parties

London's catering industry has been hit by a substantial fall in bookings as cash-strapped City firms cancel their Christmas parties, leaving staff to organise and pay for their own events.

The economic slowdown and the terrorist attacks in New York are being cited by companies opting to cancel celebrations.

One of the capital's biggest party organisers, Elegant Days, said there had been a drop of around a fifth in office party business, mainly in the IT and technology sector. A spokesman said: "There are 20 per cent fewer parties and those firms that are having them are inviting 10 per cent fewer people."

Another large party caterer, Sodexho Prestige, is also suffering from a similar fall in bookings, mainly in London and the City, with Deutsche Bank the latest company to call off divisional events.

Telecoms giant Marconi, which controversially gave its chief executive Lord Simpson a £1.8 million severance package despite losses of £5.1 billion in the first half of this year, has told staff their party is off. A company insider said: "We are currently in a strategy to reduce our costs. It shouldn't surprise anybody there will be no company-funded Christmas parties this year in view of our position. We are looking at all areas which cannot be shown to generate revenue. I think Marconi employees understand the reasons."

US investment bank JP Morgan is another major institution to cut back. "We've decided to cancel Christmas parties," said a spokesman. "Not just here in London, but throughout the Europe, Middle East and Asia region, whose headquarters are here.

"It's a combination of the sobering events of 11 September and the slow conditions in the market."

Many departments of British Airways are also paying for their own festive parties. A press office spokeswoman said: "Our office is paying for our own event. We are going to the dog races. It's basically for cost-cutting reasons. I think that it's a general trend across the company and the aviation industry."

However, one US investment bank that will be having a Christmas bash for all of its 3,000 London employees is Lehman Brothers, which is taking over a London nightspot in Christmas week for a "forget your cares" bash.

"We're very mindful of the dreadful events in New York this September, but we have decided to have a Christmas party after all, as a way of thanking our staff for making this an otherwise good year for the company," said a representative, adding, "it's also a way of saying that life must go on."

Some other companies say they will buck the current trend and still go ahead with their parties, as they are regarded as an important moraleboosting exercise.

They include Henderson Global Investors, which is seeking volunteers for redundancy, and stockbroker Merrill Lynch, where 2,600 staff have taken up a similar option.

High street banks such as HSBC are allowing staff to celebrate Christmas with the same budget as previous years.

A management spokeswoman said: "It's an important way of thanking staff for the effort over the year. We don't have the same lavish parties as the investment banks, so there's no need to make any major cuts."

A statement from travel agent Thomas Cook said: "We are still going ahead with our Christmas parties this year, but staff will be making a contribution."

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