Playboy Enterprises to Cut More Jobs in Bid to Restructure
"Our goal is to transition Playboy to a brand management company and, in so doing, to more cost-effectively monetize our powerful brand and assets," said Playboy Enterprise's CEO Scott Flanders in a statement. "We are aggressively looking for opportunities to streamline our operations, consolidate functions and reduce overhead expense. The downsizing announced today is not a reflection of our employees' talents and work ethic, but rather due to the overall change in the company's strategic direction."
Playboy Enterprises has battled back from last year's rumors that it would be sold and now, it's in a situation where it is looking into club expansion and other licensing deals. The company recently revealed that it has inked a licensing agreement that will bring two Playboy clubs to the Sands China casino properties in the Chinese gambling haven of Macau.
Wednesday's announcement reinforces the company's restructuring efforts from the first quarter, when Playboy took restructuring and impairment charges of $1.1 million. The company will announce its second-quarter 2010 earnings in August.
Investors seem to approve of management's efforts to get the company back on track. The stock is up more than 30% year-to-date and up more than 10% for the month of June. Shares of Playboy Enterprises were at $4.20, up 12 cents or 2.94% in Wednesday morning trading.