Playboy Enterprises said Thursday that it’s cutting 90 jobs, half of them in its online division, to keep the black ink flowing despite a miserable economy.
In a statement, Christie Hefner, chairman-CEO of Playboy, said the job cuts and other reductions in overhead will save between $8 million and $10 million a year, and ensure profitability in 2002.
Playboy’s most lucrative division is its pay TV and pay-per-view operation, which consists of seven sex-oriented networks. Many of these networks are available both to cable subscribers and to satellite dish owners.
Playboy is better off than many of its competitors among media corporations in a sluggish economic marketplace because only about 10% of its revenue comes from advertising, namely the magazine and the Web site. The dip in advertising has hammered broadcast networks, TV stations, ad-supported cable networks and magazines.
For the current year, Playboy said it expects to report a 10% increase in cash flow to about $55 million.
At market close Thursday, Playboy was up 19¢ to $12.99.