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By
Reuters
Published
Jul 2, 2010
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Playboy cuts jobs to save $3 mln annually

By
Reuters
Published
Jul 2, 2010

Playboy
A woman stands behind a Playboy symbol during a news launch of the Playboy magazine in a hotel in Manila, April 2, 2008. www.reuters.com
(Reuters) - Playboy Enterprises said it is cutting staff in an effort to save more than $3 million annually as it transitions from a media company into one that primarily licenses the Playboy brand.

The company declined to say on Tuesday how many employees are affected by the move. At the end of March, Playboy employed 573 people in its Los Angeles and Chicago offices, down from 651 a year ago.

In December, Playboy was in talks to sell itself to the Iconix Brand Group, a company that licenses clothing brands such as Joe Boxer, but no deal was reached.

Playboy Chief Executive Scott Flanders said in a statement the company is "aggressively looking" for ways to streamline the organization.

Playboy is trying to capitalize on its iconic bunny ears logo by signing licensing deals with clothing makers, casinos and clubs as it moves away from its reliance on print advertising from its magazine.

The company expects to take restructuring charge of approximately $3 million in the second-quarter.

(Reporting by Jennifer Saba, editing by Leslie Gevirtz)

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