Recession hits Hungary’s “corporate Christmas” as budgets for gifts and parties slashed

Across Hungary, holiday budgets for company office parties and corporate gifts have been slashed by up to 50%, writes daily Népszabadság. While gift baskets and expensive corporate gifts have been popular in recent years, executives of many multinational firms operating in the country have begun to demand that gifts above a certain value – often €5 – must be returned, and invitations to holiday events must be reviewed by the company. Some firms have also begun to dictate that employees can only attend events if they are giving a presentation. The tightening of companies’ wallets comes alongside a move by the Hungarian government to clamp down on holiday expenditures by state bodies, including a directive from Prime Minister Gordon Bajnai that such agencies not send out Christmas cards and cut back on holiday parties.

The paper writes that such belt-tightening has already resulted in bankruptcies among party-planning firms.

Unsurprisingly, among those firms seen still splashing out at the holidays are those that depend on personal contacts for sales, but even here the circle of people given gifts or hospitality has narrowed to include a smaller number of higher-placed executives.

Tesco’s “Family” Christmas

Meanwhile, hypermarket leader Tesco Globál Áruházak Zrt is offering a special holiday “bonus” to its employees, by favoring the relatives of current workers when hiring temporary help for the Christmas rush. Last week the firm hired 800 temporary workers, many or most of which are relatives of their permanent employees.