Embattled Californian publisher THQ has announced that it is on target with plans to slash annual spending by $220 million.

Early in February the firm announced that, for it to achieve those cuts in annual spending, 600 jobs were going to be axed from its global workforce.

“We have executed on our previously announced business realignment actions,” says Brian Farrell, THQ CEO. “Our goal is to return to profitability and generate positive cash flow in fiscal 2010, and to position THQ for long-term sustainable and profitable growth.”

News emerged on Wednesday that Big Huge Games, a THQ internal studio, is undergoing large staff cuts and will close entirely in a matter of weeks if an investor does not come in to rescue the studio.

Yet there is now the implication that THQ’s most difficult measures are behind the company. The cost of realigning the business stands at around $45 million; $4 million of which goes to employee-related costs such as severance pay, while the remaining $41 million pays for impairment charges related to the cancellation of titles and assets.

THQ expects to pay another $10 million next year in related costs, but Farrell is confident that the group will return to profitability. “We look forward to demonstrating success with our upcoming fiscal 2010 releases, including UFC 2009: Undisputed, Red Faction Guerrilla and Darksiders,” he added.