Behind the 'Playboy' Shakeup

Playboy Enterprises just announced that it's downsizing its New York office and transplanting its magazine staff to Chicago, confirming a rumor published in the New York Post this morning. "A small number" of the New York-based editorial and licensing employees will have the option of relocating to Chicago, while most will be laid off.

A little back story: Company insiders say the plan to dramatically cut costs by abandoning its expensive office space on Fifth Avenue in Manhattan has been under consideration for most of the past year, but until now has always been shelved, in part owing to the reluctance of editorial director Christopher Napolitano to relocate his family. That it's finally happening appears to be a result of a shift at the very top of the company: the departure of CEO Christie Hefner and her temporary replacement by Jerome Kern, a member of the board of directors.

Napolitano will remain with the company as an editor at large, operating out of a much smaller New York office. Meanwhile, former Maxim editor in chief Jimmy Jellinek, who until now has been running Playboy's web site, will become editorial director, overseeing a merged staff in Chicago, where the company has abundant vacant office space. The requirement of moving wasn't a deal-breaker for Jellinek, who is originally from the Chicago area.