Last month Rangers made 10 members of staff redundant in their administrative department as part of their ongoing drive to cut costs.
And in a bid to further reduce outgoings at the financially-strapped club, non-executive director Derek Llambias contacted all non-football employees to notify them the annual get-together had been shelved.
Llambias took the decision to further reduce outgoings just days after Rangers attracted their lowest home attendance for a league match in almost 30 years when under 20,000 turned up for the Championship game against Cowdenbeath.
Speaking ahead of Friday's trip to Queen of the South, McCoist said: "I'm disappointed but you have to be honest and look at it and say that with the redundancies that have been made recently at the football club I'm not sure a lot of the staff would be really in the mood for partying.
"I think it is a very sad time at the football club when people are losing their jobs and I'm not sure having a party would be the right thing."
Asked whether the playing and coaching staff would have one of their own, McCoist, who has come in for a great deal of criticism recently after his side slipped nine points behind Hearts in the title race and crashed out of the Petrofac Training Cup at the hands of Alloa, said: "It would be hypocritical of me to be 'bah humbug' and not allow people a Christmas party.
"I think particularly with footballers, with players, there is absolutely a time and a place for a festive enjoyment period, whether it's a party or a night out.
"But I think the most important thing is the players have to remember their responsibilities and they have to do it at absolutely the right time."
Meanwhile, McCoist has told Dundee United chairman Stephen Thompson to stop moaning over the size of compensation his club must pay Rangers for young Charlie Telfer.
The 19-year-old midfielder moved to Tannadice at the end of his contract in the summer, after playing just one first-team match for the Championship side.
Rangers had argued they were entitled to cash for the player's development during his 10-year association at the club but United contested the claim.
A subsequent SPFL tribunal ordered United to pay Rangers £204,000 but on hearing the figure Thompson labelled it "ridiculously prohibitive" adding: "This decision is completely at odds with the stated aims of our football authorities in respect of encouraging our most promising young players to play first-team football at the highest level."
But McCoist said: "It's very, very uncommon for these tribunals to see both parties leave delighted with the outcome.
"We feel happier with the outcome and that we got our just rewards for the education we gave Charlie over the last 10 years. I can also understand Dundee United's disappointment.
"But Stephen knew the rules before he went and got Charlie. I don't think you can complain about the rules after you make your own decision. You have to abide by them. Dundee United decided to go and get Charlie, which was well within their rights.
"But they knew the rules before they did that. Now they are having a moan about the rules. I'm not necessarily sure that should be the case. The rule hasn't changed since United went and got Charlie."
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