Dec 15, 2008

Business - Playboy lays of 14% staff

NEW YORK: Adult entertainment magazine publisher Playboy Enterprises, which has cut its workforce by 14 per cent to save costs, has identified India as a key target region to expand its geographic distribution.

Other regions where the New York Stock Exchange-listed firm is targeting to expand its presence include China and Latin America.

In an investor presentation, it said that as part of measures to cut costs in "corporate and other overhead, the company has slashed its headcount by 14 per cent," in addition to which finance, HR and IT staffing have also been reduced.

Besides, the publisher has also cut down on compensation and discretionary expenses and expects annual savings to the tune of five million dollars from all these moves.

The firm has initiated steps to save as much as seven million dollars in publishing and entertainment.

The moves include "outsourced functions, shut down non-performing business, reduced marketing and editorial spending," the presentation showed.

Playboy Enterprises would be focusing on growing its licensing business and also to create content for use on integrated media platforms.

The presentation was made by the company at a Global Media and Communications Conference organised by investment banking major UBS.

Last week, Playboy Enterprises' Chairman and Chief Executive Christie Hefner announced that she would be stepping down as CEO on January 31. The 56-year-old Hefner is the daughter of Playboy founder Hugh Hefner.

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