Playboy to Make More Cuts, Focus on Brand Management
The adult entertainment giant said Tuesday it would take a $3 million second-quarter restructuring charge and lay off more employees.
Playboy spokeswoman Martha Lindeman said the company is not disclosing the number of employees being laid off. Playboy has about 573 employees.
CEO Scott Flanders said Playboy's goal is to become a brand management company that makes its revenue from "powerful brand and assets" in a more cost-effective way.
"As we proceed through this transformation, we are aggressively looking for opportunities to streamline our operations, consolidate functions and reduce overhead expense," Flanders said in a release. "The downsizing announced today is not a reflection of our employees' talents and work ethic, but rather due to the overall change in the company's strategic direction."
The company said it expects the second-quarter restructuring will result in cost savings of more than $3 million annually. Last year, Playboy outsourced its publishing functions and eliminated scores of jobs.
Last month, the company reported a narrower loss of $1 million, compared with a year-earlier loss of $13.7 million, and said it expected 2010 to be a transitional year. Revenue declined 15 percent, to $52.1 million.
Playboy plans to release second quarter earnings on Aug. 5.