It's not going to be a Merry Christmas for staffers of the Katie Couric show.

Just two hours before their holiday party, they were told the show was cancelled. ABC and Couric made a joint annoucment that they had "mutually agreed that there will not be a third season of the show."  

The staffers did get a holiday gift of cashmere gloves from Couric.

Couric recently signed a deal with Yahoo! to become their global anchor online.