Playboy Enterprises Cuts Jobs, Online Staff

Playboy Enterprises Inc. said it is cutting 90 jobs, half at Playboy Online, as one of several steps to ensure profitability in 2002 and save about $8 million to $10 million a year.

Playboy expects to report a restructuring charge, the bulk of it in the fourth quarter of 2001, for the measures.

“Playboy is less vulnerable to the economic slowdown because only 10% of our revenue is derived from advertising. In addition, our entertainment content has proven appeal even in a weak economic climate,” said Christie Hefner, chairwoman and chief executive of Playboy.

Most of the benefits from the initiatives will be realized in 2002.

For the current year, Playboy said it expects to report a 10% increase in earnings before interest, taxes, depreciation and amortization to about $55 million, excluding restructuring and investments in online, which is being separately funded. The company reaffirmed its earlier guidance that its online business will reach profitability in 2002.