THQ lays off 240 people, cuts CEO pay
THQ recently announced that it was shifting its focus away from licensed games aimed at kids, instead choosing to focus on “core” mass market titles. That, coupled with the flop of uDraw, suggested that the company isn’t doing so hot–and, as it turns out, they aren’t.
According to THQ’s regulatory filing with the SEC, the company will be laying off 240 people worldwide as part of the company’s corporate restructuring efforts, which began in January. THQ says that those affected have already been notified, and the layoffs do not apply to any development studios, only administration and publishing offices.
“On January 26, 2012, Company’s management initiated a plan of restructuring in connection with the updated business strategy in order to appropriately adjust the Company’s operating expenses to better align with the expected revenues under the updated strategy,” the filing reads. “The restructuring plan involves a realignment of the organizational structure resulting in reductions of up to 240 selling, general and administrative personnel worldwide.
“The majority of the restructuring plan is expected to be implemented by March 31, 2012, with the remainder completed by September 30, 2012.”
Additionally, THQ confirmed in the filing that the company’s President and CEO, Brian Farrell, will have his salary reduced from $718,500 to $359,250 beginning February 15, and lasting for a one-year period. The pay cuts also apply to THQ’s board of directors as well–members will have a 50% reduction in their salary.