Los Angeles - Playboy Enterprises (NYSE: PLA) has announced plans for a restructuring that aims to reduce costs by $12 million annually, which will include the shuttering of its DVD business in favor of Web video, consolidation of office space, and the elimination of about 80 positions, PaidContent reported.

"We will continue to deliver more of our content digitally, using our assets across multiple distribution platforms and adding more a la carte offerings," Playboy CEO Christie Hefner wrote in a memo to employees posted by PaidContent.

"Given the declines in the DVD market, we will exit that business in phases over a few months to concentrate on selling that content online."

The company expects to take a charge of $6 million in the third quarter to account for the restructuring.

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