Business Spotlight:

Some of the region’s largest companies are planning to either cancel or scale back holiday parties this year, in yet another example that a national recession continues to have local implications.

Officials with Yahoo Inc. and NBC Universal — which collectively employ more than 3,000 workers in Burbank — have said they will spend less on holiday parties this year, and Warner Bros., which does not traditionally host corporate holiday parties, has no plans to do so this year, officials said.

The consequence of scaled-down or canceled parties has resulted in fewer reservations at large hotels where corporations have traditionally hosted their voluminous workforce.

“Everybody’s kind of toned down a little bit,” said Benson Lee, general manager of the Hilton Glendale, where business has diminished by about 20%.

“They are still doing something, still offering a nice event, but their budget is probably less than what they had in prior years.

“Instead of steak and seafood, they might be going with a chicken dish or fish dish.”

That may be the case for Yahoo, where officials said that the Internet search company, which runs an office of about 1,000 employees in Burbank, considered canceling its annual holiday party.

“But we booked a venue months ago to secure a good rate, so the savings will be minimal if canceled,” spokeswoman Kim Rubey said.

“We believe it’s very important to show our employees that we appreciate them as they worked so hard in a challenging year.”

Rubey said Yahoo is exploring other ways to contain costs. The Internet giant began handing out pink slips to employees Dec. 10, following an October promise to slash 10% of its workforce.

NBC officials did not want to be quoted, but did confirm that the network is scaling back plans this year for its annual employee holiday party.

The city of Glendale also got into the act by canceling its annual holiday celebration in a cost-cutting move enacted by the City Council earlier this year.

The action could save Glendale up to $32,000, which is how much last year’s party cost for the city’s estimated 2,000 employees and their guests, Community Relations Coordinator Zizette Ayad said.

This year’s cancellation is the first time Glendale has called off its employee holiday party for economic reasons in at least 14 years, she said.

But while unusual, the action by companies and cities to scale back employee holiday parties is not unprecedented, said Jack Kyser, head of the Los Angeles Economic Development Corp.

Organizations traditionally siphon off non-business-related expenses, such as parties, during economic slowdowns — as many did during the 1980-81 recession, which lasted 16 months, and the economic slowdown in the early 1990s, he said.

“Because of the economy, companies don’t know what’s lying ahead, and they are trying to conserve cash,” said Kyser, adding that corporations have to toe the line between cutting costs and boosting employee spirits.

“You’ve got to keep morale high for the remaining employees, so you try to do something,” he said.

“But any time you have an economic downturn, companies look at ways they can conserve. They always try to cut back on nonessentials.”