CHICAGO – Playboy Enterprises, Inc. (PEI) (NYSE: PLA, PLAA) today announced that it is downsizing its organizational structure and expects to record a restructuring charge of approximately $3.0 million in the 2010 second quarter as a result.

PEI’s Chief Executive Officer Scott Flanders [pictured] said: “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. As we proceed through this transformation, 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.”

The company said it expects the second quarter restructuring will result in cost savings of more than $3.0 million annually. PEI plans to release second quarter earnings on August 5, 2010.