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THQ CEO Reducing Salary, Layoffs Now At 240

When it rains, it pours...

Reports of THQ's problems have been fast coming in the past week. Two rounds of layoffs and a threat of delisting off the NASDAQ have painted a picture of a company in dire straits. Unfortunately, the bad news keeps coming with this latest report.

Game Informer is reporting that THQ CEO Brian Farrell will reduce his salary by 50% and layoffs are now totalling 240 people, according to a new filing with the SEC. Farrell's salary will be reduced from $718,500 to $359,250 a year effective February 13, 2012. He'll lose money if he is fired or resigns during this period.

In addition, the company's board of directors will also have their salaries cut by 50% for one year. These layoffs do not impact the publisher's five internal studios, which include Relic Entertainment, Vigial Games, and Volition. THQ is holding an earnings call today where additional details about THQ's restructuring plan will most likely be revealed.

The filing with the SEC reads as follows:

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 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.

Press Release


THQ CEO Brian Farrell will reduce his salary by fifty percent and layoffs from the publisher's recent restructuring total 240 people, according to a new filing with the SEC

THQ's new filing says Farrell will see his salary reduced from $718,500 to $359,250 for a one?year period beginning February 13, 2012. He will lose additional money if he is fired or resigns during that time. The company's board of directors will also have their salaries reduced by fifty percent for one year.

In January, THQ announced it was undergoing a restructuring plan that would see the publisher focus on core game and its digital business. The filing confirms the entire restructuring will see layoffs total 240 employees between now and September. These layoffs do not impact the publisher's five internal studios, which include Relic Entertainment, Volition, and Vigial Games.

"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."

THQ will hold an earnings call tomorrow where it's expected we'll hear more about this restructuring plan.

The SEC filing from today can be read here.


 

Comments

Nick DiMola Director

02/02/2012 at 08:49 AM

Let's not kid ourselves people, THQ is dead. They might get scooped up by someone else at this point just for their IPs.

Jesse Miller Staff Writer

02/02/2012 at 10:23 AM

I too would be more than surprised if THQ somehow came out of this mess whole.  They'll likely get bought up by someone, or they'll start selling off IPs to stay afloat/pay off debts.  Though this may be the end of the publisher, their larger IPs will live on.

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Press Release

THQ CEO Brian Farrell will reduce his salary by fifty percent and layoffs from the publisher's recent restructuring total 240 people, according to a new filing with the SEC

THQ's new filin...

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