THQ filing confirms major layoffs
An SEC filing by THQ confirms that the company plans to layoff as many as 240 employees by the end of September this year as part of its restructuring plan.Garnett Lee
February 1, 2012 4:00 PM9
A standard disclosure form filled by THQ with the SEC today confirms the major layoffs we heard about late last week coming at the videogame publisher. It also reveals a whopping 50 percent pay cut for its President and CEO. The moves constitute a large part of the company’s plan to restructure around core game development as it leaves behind licensed products aged at younger kids. The document reads, “The restructuring plan involves a realignment of the organizational structure resulting in reductions of up to 240 selling, general, and administrative personnel worldwide.” Though he’s not losing his job, THQ president and CEO Brian Farrell also agreed to an amended employment agreement that reduces his pay for a one-year period beginning February 13 from $718,500 to $359,250.
The plan calls for most of the cuts and related restructuring over the next two months to be completed by March 31. The remaining moves will be staggered thereafter, wrapping up by September 30. The layoffs, combined with the news that the Nasdaq issued a delisting order for the stock, paints a dark forecast in advance of THQ’s third quarter results conference call for investors scheduled to take place tomorrow afternoon.
Though unconfirmed, a tweet by veteran videogame executive Kevin Dent says that the cuts at THQ include it VP of Technology, Mark DeLoura. He had joined THQ in December of 2010.