Playboy hires out operations to cut costs

CHICAGO, Nov. 24 (UPI) -- Playboy Enterprises in Chicago said it had signed a contract with Boca Raton, Fla., firm American Media Inc. to assume most of its operations to cut costs.

AMI produces a variety of periodicals, including National Enquirer, Fit, Pregnancy and Men's Fitness, The Chicago Tribune reported Tuesday.

Playboy will remain the proprietor of editorial content, while AMI takes over marketing, distribution and ad sales with a five-year agreement, the newspaper said.

Playboy said most of the 30 employees who already cover these jobs will be dismissed, although AMI may pick up a few of the employees that are let go.

Playboy Magazine lost $13 million in 2008 and is expected to lose $8 million in 2009, the Tribune said. Playboy Enterprises is said to be shopping for a buyer for the magazine.