Playboy spokeswoman Linda Marsicano told XBIZ that the budget cuts, in both programming and editorial, are “across the board” but would not elaborate further beyond saying that half the jobs it plans to cut are currently open.
The reductions come as Playboy has struggled with big losses at its iconic magazine unit due to depressed advertising and lower newsstand revenue.
The company, which warned of weak results from its magazine and U.S. television business in May, is scheduled to report its full second-quarter results the week of Aug. 7.
The August filing with the Securities and Exchange Commission may shed light in the purchase price of Club Jenna, which Playboy acquired last month.
Besides Club Jenna, the company has made significant inroads into online properties this year, particularly after its $12 million acquisition of ICS, owners of Adult.com, GFY.com and RealityCash. ICS also owns the Webmaster Access trade shows and CinemaPlay Entertainment Group, a Chatsworth, Calif.-based video distribution outlet.
Last year, Playboy as a whole posted a weaker-than-expected profit of $4.6 million, down from $14.5 million, a year earlier.
In Wednesday’s announcement, the company said it expects to report a loss in the range of $0.10 to $0.13 per share for the second quarter ended June 30.
Besides its magazine, Playboy operates the Playboy and Spice television networks and distributes DVDs. It also licenses the Playboy logo and publishes its namesake magazine and almost two dozen foreign editions.
