Things seemed to be looking up for Playboy last we checked in.
In early May, the company announced it had narrowed its Q1 net loss to $1 million from $13.7 million a year earlier, while revenues in some areas of the company were up. And CEO Scott Flanders, then about a year into his job at the company, seemed to be plugging along with his plans for new partnerships, new executive hires, and attention-grabbing magazine covers.
But sadly, the bunnies now have less cause to be perky, since Playboy just announced that it is further “downsizing its organizational structure.”
Which means, as far as we can tell from this item in Folio, that more staffers were recently laid off:
According to Playboy Enterprises CEO Scott Flanders, the company’s goal is to “transition Playboy to a brand management company and, in so doing, to more cost-effectively monetise our powerful brand and assets. As we proceed through this transformation, we are aggressively looking for opportunities to streamline our operations, consolidate functions and reduce overhead expense.”
“We will focus on what we do really well, namely building the brand, protecting the brand and creating its content,” a Playboy spokesperson tells FOLIO:.
As a result of the restructuring, Playboy expects to record a restructuring charge of roughly $3 million during second quarter. The spokesperson declined to say how many staffers have been let go, or from which departments.
As of March 31, Playboy Enterprises employed 573 people, the spokesperson says, down from 651 people on March 31, 2009.
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