THQ Announces 240 Layoffs as Part of Restructuring Plan

February 2, 2012 -

IGDA Mobile SIG Chair Kevin Dent predicted that THQ would lay off around 170 employees yesterday. It turns out that he was under reporting the carnage at the company. Today it was revealed that THQ plans to let a total of 240 employees go in the next few months. The majority of the staff cuts will be made by the end of the financial year on March 31, 2012, with the rest happening by October.

The company said that these layoffs would come from various departments including "selling, general and administrative personnel." In a new regulatory filing with the SEC, the company also said that it would cut CEO Brian Farrell's salary by 50 percent beginning February 13. The temporary pay cut will last a year and will reduce his salary from $718,500 to $359,250.

THQ says that this restructuring plan will cost them around $11 million, with severance costs estimated at around $8 million, contract terminations at around $500,000, and charges related to abandoned assets of up to $2.5 million.

The layoffs of sales and administrative teams were announced last week. Earlier this month the company reiterated that it would abandoned licensed children's software, instead focusing on core games and brands. The company still plans on making WWE and UFC games obviously.

Earlier this week the NASDAQ stock exchange warned the company that it could be delisted if its stock didn't start trading at $1 or more again. THQ has until July 23 to comply with the SEC rules.

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