Hugh Hefner facing bankruptcy?

Hugh Hefner has been forced to lay off Playboy staff as the economic crisis worsens.

The adult magazine tycoon has fired employees at his Los Angeles and New York offices after seeing his shares plummet from £6.20 to £1.55.

A source told the Daily Star: "Only the top brass has known for a while how bad things have been for Hef recently."

Spokeswoman Elizabeth Austin would not confirm the sackings, saying: "It is our policy not to comment on corporate matters such as employee issues."

Hefner recently split from girlfriend and Playboy Bunny Holly Madison amid rumours that she cheated on him with magician Criss Angel.

Playboy spokesman Rob Hillburger denied the speculation, stating: "The rumours that Holly left Hef for Criss Angel are not true."