I have heard it on news reports and from local vendors, corporations are cancelling Christmas. I don't believe any company can afford to cancel any event or celebration that boosts morale. In an article published by Edward Lowe Foundation it is stated that in order to boost company morale during an economic downturn "...celebrate holidays. Even if budgets are tight and morale is low, hold festive gatherings to pump up the team". I whole heartedly agree.
Any gathering that says, "we value you, we are in this together, we will make it" is not only essential during a time of economic strain, but any time. Company events develop relationship, and considering we spend the majority of our days with our co-workers creating a positive environment is essential to weathering the storm and developing a positive working atmosphere.
The challenge is to host a meaningful event on a tight and in some cases, non-existent budget. Resurrecting some of the old traditions might seem archaic but simple is sometimes surprisingly well received. So, don't cancel your celebration, embrace it as an opportunity to appreciate your staff and boost morale.