Playboy Enterprises Inc. will outsource publication of its magazine to American Media Inc., Agence France Presse reported today. Outsourcing all functions besides editorial is being done to cut costs, and the company stated it hopes the move will bring the magazine back to profitability in 2011.

AMI is the fourth-largest magazine publisher in the United States. The Chicago-based Playboy is expected to lose about US$8 million by the end of this year, and $5 million in 2010, according to the Chicago Sun-Times. About 25 jobs will be lost in the restructuring. Circulation, production, advertising sales, marketing and other services will be handled by AMI, The Associated Press reported.