Playboy Enterprises announced this week it would outsource all business functions except editorial to American Media, in an attempt to cut costs.

American Media will soon handle the production, circulation, advertising sales, marketing and other services of Playboy magazine and the company’s other publications.

Playboy CEO Scott Flanders said in a statement that outsourcing the magazine’s operations would significantly cut costs and lead to profitability in 2011.

"Playboy magazine is a vital part of this company and our brand. We evaluated AMI's outsourcing capabilities on both a quantitative and qualitative basis, and we are confident that this partnership will enable us to continue publishing a magazine that reflects the quality and image of Playboy," Flanders added.

The mens’ magazine has set March 2010 as the latest date to outsource its functions, and will pay American Media a fee for its services.

American Media publishes Star, National Enquirer, Shape, Men's Fitness and other magazines.