THQ Cuts 240 Jobs, CEO Takes Pay Cut

Discussion in 'User Submitted News' started by heartgold, Feb 1, 2012.

Feb 1, 2012
  1. heartgold
    OP

    Member heartgold GBAtemp Psycho!

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    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

    Nintendo is next! Oh wait iwata's already taken a 50% pay cut. So is Miyamoto leaving Nintendo....

    Joke aside, this is sad news.
     
  2. Foxi4

    Reporter Foxi4 On the hunt...

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    Well, d'uh. Stop releasing mediocre games and maybe you'll turn in a profit, THQ.
     
  3. gloweyjoey

    Member gloweyjoey who??

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    I was pretty sure this was coming when it was announced THQ wouldnt be making Nickelodeon games anymore
     
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  4. Guild McCommunist

    Member Guild McCommunist (not on boat)

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    Can't think of anything in recent years that really justifies their existence, exception being Saint's Row.

    Red Faction Guerrilla had good ideas but was rather rough, a good sequel (not Armageddon) would've been awesome. Something with less drab and monotonous Mars landscapes and more crowded cities with tons of destructible shit.

    Darksiders was alright but certainly nothing I'd die over. Basically just Legend of Zelda with cooler combat, more gore, and worse dungeons. Not terrible but not a deal breaker.

    And Homefront was as shameless of a CoD clone as you can get. Didn't even have a good enough single player to make up for the clear copy pasting or to even flaunt its unique "SHITS GOING ON IN AMERICA" aspect.

    Saint's Row The Third was the only recently good thing but if THQ goes under I would definitely see the franchise living on under another publisher.
     
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  5. Gahars

    Member Gahars Bakayaro Banzai

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    Seeing how successful Saints Row has been for them (especially compared to their other titles), I really hope they don't drive it into the ground in an attempt to ring every last cent from the franchise.

    Please, THQ? That isn't too much to ask for, right?
     
  6. Hells Malice

    Member Hells Malice Are you a bully?

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    Aside from Saints Row I can't say I could name a THQ title.
    Well, I can now since guild posted a few...but yeah. BEFORE I read his post, no idea.
     
  7. LightyKD

    Member LightyKD Future CEO of OUYA Inc.

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    I'm worried about the WWE games. This whole THQ situation is really starting to look sour.
     
  8. moose3

    Member moose3 GBAtemp Regular

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    Well I'm a bit partial to Darksiders myself, but seeing as I haven't played any of the console Zelda games since OOT, and that was a long time ago, I'd have a hard time really making any comparisons. Other better selling games they have published are Metro 2033 and the Warhammer 40,000 games, which they seem to be milking for all they can.
     
  9. Hyro-Sama

    Member Hyro-Sama I'm from the fucking future.

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    They always have Darksiders II which could push them back into the black.

    Plus, I thought THQ was a sound company. You the logo before any Disney move starts?
     
  10. Guild McCommunist

    Member Guild McCommunist (not on boat)

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    Lol.

    Darksiders was alright but not that alright. It's still just basically an inferior God of War or an inferior Legend of Zelda, take your pick.
     
  11. Ryupower

    Member Ryupower Brood

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    The uDraw is one big thing that made this happen
     

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