Playboy‘s Outsourcing Strategy

Playboy Enterprises Inc. has struck a deal to outsource most of the struggling magazine’s operations to Florida-based publisher American Media Inc. Chief executive officer Scott Flanders told the Wall Street Journal that the five-year deal “would help return the magazine to profitability by the end of 2011.”

That’s all well and good unless you happen to work at the magazine. The deal means many layoffs for Playboy employees. Of course, Hugh Hefner isn’t going anywhere. Editorial is the one department that isn’t being handed over to AMI. Though it would certainly be interesting to see how the company that publishes the supermarket tabloids National Enquirer, National Examiner and Globe would make over the mag.