Playboy Shutters DVD Unit16 Oct, 2008 By: Erik Gruenwedel
Playboy Enterprises Oct. 15 said it will discontinue its $2.9 million DVD production business, among other cuts, in an effort to save $12 million in annual costs and return it to profitability in 2009.
The Los Angeles-based media company said the restructuring will result in the layoff of 55 employees, incurring $2 million in related severance charges, according to a regulatory filing.
Playboy, which has seen its namesake magazine beset with severe drop-offs in advertising pages, said it will transfer the bulk of its DVD adult content, including Jenna Jameson’s Club Jenna brand, online.
The company lost $2.1 million on revenue of $73.4 million in the most recent quarter.