THQ CEO Takes Pay Cut, Layoffs Total 240 People
THQ CEO Brian Farrell will reduce his salary by fifty percent and layoffs from the publisher's recent restructuring total 240 people, according to a new filing with the SEC
THQ's new filing says Farrell will see his salary reduced from $718,500 to $359,250 for a one−year period beginning February 13, 2012. He will lose additional money if he is fired or resigns during that time. The company's board of directors will also have their salaries reduced by fifty percent for one year.
In January, THQ announced it was undergoing a restructuring plan that would see the publisher focus on core game and its digital business. The filing confirms the entire restructuring will see layoffs total 240 employees between now and September. These layoffs do not impact the publisher's five internal studios, which include Relic Entertainment, Volition, and Vigial Games.
"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.
"The majority of the restructuring plan is expected to be implemented by March 31, 2012, with the remainder completed by September 30, 2012."
THQ will hold an earnings call tomorrow where it's expected we'll hear more about this restructuring plan.
The SEC filing from today can be read here.