THQ confirms up to 240 job losses, CEO pay cut
THQ plans to cut as many as 240 “selling, general and administrative personnel” as part of its recently announced restructuring plan.
The majority of the cuts will be implemented by March 31, 2012, with the remainder made by the end of September, the publisher said today in a regulatory filing.
Company CEO Brian Farrell has also agreed to reduce his base salary by 50 per cent, from $718,500 to $359,250, for a one-year period beginning February 13, 2012.
Late last month, THQ announced plans to revise its business strategy by exiting the kids’ licensed games market and focusing its resources on core franchises and digital initiatives.
The firm expects the cost of the restructuring plan to reach $11 million, with the charges primarily recorded during the fourth quarter of fiscal 2012. Severance costs are estimated at $8 million, contract terminations at $500,000, and potential charges related to other fixed assets that may be abandoned at up to $2.5 million.
Earlier this week, THQ was warned that it will be delisted from the Nasdaq stock exchange unless it can drag its share price out of the doldrums in the next six months.