THQ confirms 240 job cuts, CEO takes pay cut
Ailing publisher THQ on Wednesday confirmed deep cuts to its headcount, related to recent restructuring measures.
The publisher initiated a plan last week to lay off 240 sales, general and administrative personnel worldwide, according to a regulatory filing.
The confirmation of the cuts comes shortly after THQ said it would be exiting
the once-lucrative kid's licensed game business, and restructuring to focus on core games and digital revenues.
Most of the layoffs will be completed by the end of March, the company said, with the rest completed by September. Severance payments to laid-off workers will amount to around $8 million.
Company president and CEO Brian Farrell will be taking a 50 percent cut to his base salary, from $718,500 to $359,250, for a one-year period beginning February 13, 2012.
After that year is up, THQ and Farrell will then review the base salary going forward, "provided that it shall be no lower than $718,500 per year commencing on February 13, 2013." That amount is subject to increase, but not decrease, for years going forward, the contract said. The revised contract also reduces Farrell's bonuses. Non-employee directors also took 50 percent cuts.
THQ currently faces a possible delisting
from the Nasdaq stock exchange. The company has until July 23 to maintain a share price of at least $1 per share for 10 consecutive days. Its stock is currently listed at around 70 cents per share.