Playboy downsizing business, will take $3 million charge in 2nd quarter
By APTuesday, June 29, 2010
Playboy downsizing business, will take $3M charge
CHICAGO — Playboy Enterprises Inc. said Tuesday it plans to downsize its business structure and will take a second-quarter restructuring charge of about $3 million as a result.
Spokeswoman Martha Lindeman said the company is not disclosing the number of employees being laid off. Playboy has about 573 employees.
CEO Scott Flanders said Playboy’s goal is to become a brand management company that makes money from its “powerful brand and assets” in a more cost-effective way.
“As we proceed through this transformation, we are aggressively looking for opportunities to streamline our operations, consolidate functions and reduce overhead expense,” he said.
Shares fell 19 cents, or 4.4 percent, to close at $4.08 amid a broader market decline.
