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Insight: The End of the Office Party? From Festive to Frugal as Businesses Cut Back on Festivities

Insight: The End of the Office Party? From Festive to Frugal as Businesses Cut Back on Festivities

Professor Abigail Marks shares her expert opinion on the decline of companies hosting Christmas parties this year.

16 December 2025

This year, fewer than half of companies are planning a Christmas party — a sharp drop from what was once a near-universal workplace tradition. Professor Abigail Marks, Professor of the Future of Work, spoke about this shift in a BBC Scotland interview on Friday 5 December.

In the interview, Professor Marks offered several reasons why some organisations have decided to cut back on festive celebrations. "It’s difficult to say which came first — the decline of the Christmas party or the shift in workplace culture. In many organisations, employees are no longer in the office every day, meaning colleagues interact less frequently. As a result, a Christmas party may feel less significant to individuals, despite historically being an important opportunity for organisations to bring people together" she said.

A group of colleagues wearing festive hats and chatting around desks in an office decorated for Christmas.

There are several forces behind this decline. For many companies, the pandemic was the beginning of the end for the traditional Christmas party. Attitudes have also changed: more people are choosing sobriety, and workforces are more diverse today, with many employees who don’t celebrate Christmas or drink alcohol — something that HR experts such as the Chartered Institute of Personnel and Development (CIPD) highlight as a reason to rethink festive events. The CIPD advises businesses to make celebrations genuinely inclusive, consider dietary and cultural needs, and remember that attendance should always be optional.

Economic pressures also come into play. Uncertainty and rising operating costs make it harder for organisations to justify spending on a large-scale party. There’s also another practical concern, once a company funds an event, it opens itself up to liability for employee behaviour. Misconduct at work-related gatherings can lead to complicated HR and legal issues.

For many employees, the Christmas party was a highlight of the year — a chance to relax, have fun, and meet colleagues they might not otherwise see. With fewer formal celebrations, some employees are organising their own smaller gatherings. While well-intentioned, these gatherings risk feeling less inclusive and can dilute the sense of collective celebration that a company-wide event once provided.

Professor Marks stresses that if businesses do choose to continue festive events, they need to be inclusive and welcoming for everyone — including non-drinkers and those for whom Christmas isn’t a cultural celebration. Without these shared moments, there’s a real question about how workplace culture and everyday relationships may be affected in the years ahead.