CHICAGO — Reeling from declines in readership and advertising, Playboy magazine is contemplating "radical changes" that may include cutting its circulation and reducing the frequency with which it is published, Jerome Kern, interim chairman and CEO of Playboy Enterprises Inc., told analysts yesterday.

The struggling publisher has embarked on a series of cost cuts in recent months. Christie Hefner departed as chief executive in January, after two decades as leader of the Chicago-based media firm, and Playboy's board is in the process of finding her replacement.

Next up is a makeover of its flagship publication. Playboy plans to combine its July and August issues into a single edition to reduce printing and distribution costs, and it is looking at trimming its circulation and reducing its advertising rates, officials said.

Playboy is also planning to roll out a redesign in its June edition aimed at bringing a "younger and fresher look to the magazine," Kern said.

Playboy magazine's revenues dropped 16 percent, to $13.5 million, during the first quarter, and are expected to plummet 39 percent, year over year, during the second quarter.