PLAYBOY boss Hugh Hefner is laying off some of his bunnies because of the credit crunch.

The tycoon is reported to have been told to “strip back” loyal staff at his famous glamour empire.

His multi-million dollar company has been hit by the global banking crisis that has seen share prices plummet from £6.20 to £1.55.

And to stop the organisation going bust the 83-year-old is expected to execute mass sackings in his Los Angeles and New York offices this month.

“Only the top brass has known for a while how bad things have been for Hef recently,” said an insider. The Playboy stock has plummeted and is now considered a junk stock with no future.

Last night spokeswoman Elizabeth Austin would not confirm the sackings, saying: “It is our policy not to comment on corporate matters such as employee issues.”

The news comes as Hefner’s empire was rocked by allegations two of his top bunnies – Holly Madison and Kendra Wilson – have been cheating on him.

Holly is believed to have done the dirty with magician Criss Angel, while Kendra, is reportedly dating football star Hank Baskett.

“The rumours that Holly left Hef for Criss Angel are not true. Holly and Kendra are all still living at the Mansion,” said another Playboy spokesman Rob Hillburger.