THQ lay offs continue, CEO takes substantial pay cut
The THQ saga continued today, as a filing with the SEC reported that the company's restructuring process has laid off a total of 240 employees, and that their CEO will be taking a 50% pay cut.
The filing detailed the CEO's pay cut, which will be in effect starting February 13, 2012. Brian Farrell will have his pay reduced from $718,500 to $359,250 for a one−year period. He will lose additional money if he decides to resign or is fired during that time. The report also outlined a pay cut for THQ's board of directors, which is also near the 50% range.
"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."
This restructuring period is expected to be implemented by March 31, 2012, with the remainder completed by September 30, 2012. The plan has shifted the company's focus from family-oriented games to hardcore titles such as Saints Row: The Third and UFC. We wish the best for those who have lost their jobs. Those folks are highly talented, and deserve the brightest of futures.