In order to cut costs by nearly $12million Playboy Inc announced they will cut their DVD production in favor of distributing content online.
Despite the fact that Playboy is the world's most widely read adult entertainment magazine it has been showing some losses in the recent tough economic crisis. In August, Playboy posted a second-quarter loss of $2.1 million, or 6 cents a share, compared with net income of $1.9 million, or 6 cents a share, a year ago. Revenue fell 14 percent to $73.4 million.
Last month, tycoon Hugh Hefner was advised to cut back on staff as his empire struggled to cope during the deepening economic gloom. The move will cost the company 80 jobs and $2million in restructuring charges. However Playboy has said that it expects to see some benefits from the cuts in the fourth quarter of 2008, and the full effects next year.
Christie Hefner said the company will continue to deliver more content digitally as it exits the DVD business in phases over a few months to concentrate on selling that content online. Hefner said of the 80 jobs being eliminated, 25 were already open.
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