Lays Off 12 Staffers

SAN FRANCISCO - BDSM erotica studio and website network laid off 12 people Monday, trimming 11 percent of its in-house staff. founder and CEO Peter Acworth told AVN Online he decided to downsize because his company has experienced too much rapid growth in the midst of an ailing economy.

"We have just over a hundred people working for the company, and this was mostly in the production department," he said. "Potentially, we've decided to restructure the company to a position that leaves us room for future growth."

Acworth doesn't expect any further layoffs this year.

"We grew rapidly last year and hired 50 people, which was just too much," he said. "Now the company is much flatter and more efficient."

Future plans for include the launch of the company's second gay website,

"It comes on the heels of the first one,, which has done very well," Acworth said.