Is Playboy facing bankruptcy?

Hugh Hefner has been advised to serve pink slips to more than a quarter of the staff at Playboy Magazine as the multi-million dollar nude empire faces collapse following a significant drop in revenue.

The 83-year-old Hefner has been told to lay off much of the staff at his Los Angeles and New York offices as soon as this month or risk going bankrupt, a new report from the Daily Telegraph claims.

The company has recently seen shares take a devastating nosedive as a result of the fragile global economy.

“Only the top brass has known for a while how bad things have been for Hef recently,” an insider revealed. Adding that bosses have been aware of Playboy’s dismal financial situation for “a while.”