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THQ confirms 240 job cuts, CEO salary halved

Wednesday, 1st February 2012 23:21 GMT By Brenna Hillier

Financially troubled publisher THQ has come clean on the staff cuts resulting from its restructuring, revealing even greater carnage than rumours suggested.

In a regulatory filing, THQ revealed it will make “up to 240″ redundancies before September, with the majority to be completed by the end of March.

As previously reported, the cuts will not affect development staff, and THQ expects to shoulder $8 million in severance pay outs.

Industry talk suggests some staff have already been given their marching orders; IGN reports 14 cuts have been made at THQ Australia – around half of all staff. Our thoughts and best wishes go out to all affected.

Those at the top are taking a hit, too; president and CEO Brian Farrell has accepted a 50% cut to his salary for the year beginning February 13, down from $718,500 to $359,250. Farrell’s new contract requires that his salary return to full strength in February 2013, and may not decrease after that time.

THQ’s financial situation is so perilous it is on the verge of being delisted from NASDAQ; the timing of this filing, just one day before the company’s regular quarterly report, suggests may be an attempt to stave off that threat. The publisher also announced last week that it would exit development of children’s games.

Thanks, Gamasutra.

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4 Comments

  1. Yoshi

    I can’t imagine the gaming world without THQ, it might not be a major publisher such as Acti or EA but they certainly do their part.

    I reckon Ubi would be in a similar situation if it wasn’t for Assassins Creed. AC really has been fantastic for Ubi.

    #1 3 years ago
  2. DSB

    Ubisoft have had a number of good games though. The line-up isn’t their problem, although they were certainly dropping fast when all they had was their “reputation”.

    Brian Farrell shouldn’t be getting paid at all. He should’ve stepped down while there was still time. That clause in his contract is like a slap in the face to shareholders.

    It has to make you wonder how the company could fare so poorly without any investors taking action. Farrell may be chairman, and he may be sitting on his ass, but how much money do people have to lose before it’s time to say something?

    #2 3 years ago
  3. Telepathic.Geometry

    Hard times ahead for former THQ employees. :( It’s like THQ were making all the right moves and making an honest effort to make good games and were just cursed somehow. :(

    #3 3 years ago
  4. Brenna Hillier

    Updated with some more information on local cuts.

    #4 3 years ago

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