Playboy Enterprise Inc. said in a regulatory filing that it will slash its payroll and reduce annual costs by $12 million as it sheds about 80 positions companywide. 25 of those are empty slots.

The company is still in good shape but they don't plan to wait until the sky is falling for repositioning. They are getting out of the DVD business. As they exit that business in stages they envision that content distribution going online. Also, the Playgirl Magazine is becoming strictly an online enterprise. They are also turning to outsourcing more of their business, including newstand sales for Playboy.

Of course they still have their cable business.

They have a $25 million dollar reserve. They have a $50 million dollar credit line at 3%.
And they have a brand that many businesses would love to have.

October 20, 2008
Last Trade: 1.71
Trade Time: 11:12AM ET
Change: 0.04 (2.29%)
Prev Close: 1.75
Open: 1.78
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1y Target Est: 5.50
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