Facing a Wall Street delisting and flagging sales, publisher THQ today outlined plans for a massive restructuring that eliminates up to 240 jobs and cuts the pay of execs by as much as fifty percent.
“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,” according to an SEC filing. “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.”
The plan also reduces company president and chief executive officer Brian J Farrell’s base salary by fifty percent, down from $718,500 to $359,250 for one year. It also reduces any lump pay tied to Farrell leaving or being fired without cause by a third.
The rest of the company’s directors were also hit with a one year, fifty percent pay cut.
THQ says in the filing that the massive layoffs and pay restructuring are all tied to the companies “updated business strategy” which has them refocus their energies on core video game franchises and digital initiatives. The company decided to stop making kids’ licensed video games. The cut in staffing is a reflection of how much the company thinks it can make under this new plan, according to the filing.
The company expects to spend about $8 million in severance and half a million in contract terminations.
http://subcathoin.tu...ay-cuts-hit-thq
Joke aside, this is sad news.
