240 jobs cut in THQ "restructuring plan"

By Fred Dutton Published 1 February, 2012

Plus, CEO Brian Farrell takes a 50% pay cut.

THQ has confirmed a round of job cuts following rumours circulating earlier today. However, the extent of the redundancies is considerably greater than the 170 initially suggested.

An SEC filing logged by the publisher today detailed a comprehensive "restrucuring plan" that will see "up to" 240 personnel let go.

"Selling, general and administrative" departments are all affected. There was no mention of developer cut-backs at THQ's internal studios.

"The majority of the restructuring plan is expected to be implemented by March 31, 2012, with the remainder completed by September 30, 2012," read the filing.

In addition, CEO Brian Farrell has accepted a 50 per cent pay cut, from $718,500 to $359,250, for a one-year period beginning 13th February 13.

A number of recent reports suggest that THQ has serious financial difficulties. Yesterday it was threatened with a Nasdaq stock exchange delisting if share prices don't rise above $1 in 10 days.

Earlier this month, an industry insider claimed that it had cancelled all titles beyond 2013 in preparation for a buy-out.

We should learn more tomorrow, when THQ is due to release its quarterly financial report.

Picture of Fred.

About Fred Dutton

Fred Dutton is Eurogamer's US news editor, based in Washington DC.

Read more articles from Fred by visiting the Fred Dutton archive page.

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Comments (20) Latest comment 3 weeks ago

  • aleksiranta Verified Product Manager Microsoft Entertainment & Devices, Also Finland LTD #1 3 weeks ago

    oh dear.

  • pipito #2 3 weeks ago

    so they pretty much dead. few days ago info about delisting them from NASDAQ

  • the_dudefather #3 3 weeks ago

    Hope everyone involved ends up alright, not a pleasant experience

  • uiruki #4 3 weeks ago

    Firing people is a quick way to boost a stock. Got a long way to go, though - it rose by 5 cents, but it is still only at $0.72.
    Edited by 1 at 01/02/12 @ 23:19

  • digitalash #5 3 weeks ago

    Just hope the great studios involved pull through. THQ have struck me lately as a slightly-less competent version of 2K; hardcore-centric properties with a focus on quality and bold ideas. Only problem is, the quality filter hasn't always been particularly efficient.

  • bobfish09 #6 3 weeks ago

    To be fair, given how many games they've published over the last few years, 240 people in "Selling, general and administrative" is way more than they should need.

  • TrevHead #7 3 weeks ago

    We all know whats gonna happen next, EA or Activition will buy them out.

    Sigh the gaming industry gets worse every day

  • SpaceMonkey77 #8 3 weeks ago

    Well, instead of EA or Activision, I'd like to see Square step in instead. They saved Eidos when they got in trouble, so adding THQ would make them more of a force in the industry, where the only big jap boxers are Sony and Nintendo. Square would also stand to gain more talented staff that they can learn from, who can make cool games. Besides, they need more than FF to survive.

    EA and Activision are already big enough beasts, thanks.

  • craziii #9 3 weeks ago

    @gotyourmoney total of 240. but who the hell needs that many in the sales department?

  • Lucodeath #10 3 weeks ago

    I would love a pay cut to $360,000. Next people will be moaning about not having tax breaks in the video game industry.

  • Ahskay #11 3 weeks ago

    This is more Danny Bilson's fault though. His new approach to games didn't turn out quite so well as he expected. That experiment with ATV is the worst. He should be ashamed of ruining a company singlehandedly.

  • Subdominator #12 3 weeks ago

    @TrevHead No, they won't. THQ has no assets. Most of their games are based on licensed IPs. Can't believe the CEO stays. After all he is the one that made the decision to release uDraw on PS360, which is the main reason why they're in trouble (having produced two million tablets of which only 100k were actually sold through).

  • evild_edd #13 3 weeks ago

    "In addition, CEO Brian Farrell has accepted a 50 per cent pay cut, from $718,500 to $359,250, for a one-year period beginning 13th February 13."

    Whilst I applaud this gesture, the cynical side of me suggests he's hedging his bets here: the company may not exist come Feb 2013, or if he has turned it around he may well expect some decent share incentives to reward his efforts.

    Cynicism aside, however, at least the move shows that he's taking on some responsibility for the company's fate.

  • dingo75 #14 3 weeks ago

    Seems your fun idea to block activation of UK retail bought copies of Saints Row 2 and 3 from German IPs worked out pretty well THQ...

  • Buran #15 3 weeks ago

    Brian Farrell and the dierectives are a bunch of incompetents. They took a profitable company rated at >30 $ per stock and turned it into a almost-bankrupt company with a value of less than 1$ per stock and massive debts, gaining more than 1 million $ a year each one of them (Farrel, Martin Good, Paul Pucino, Ian Curran...). Take a lok, worst enterprise management ever:

    http://www.industryga mers.com/news/thq-ex-employee-lashes-out-against-managing-st aff-board/

  • killuminati2911 #16 3 weeks ago

    Man they are seriously doing their best to stay afloat. Hope they manage to reach teir goal since I'd hate to see thq disappear (or worst been taken over by EA) with all the good IP and developers they got.
    Best of luck to them!

  • Darren #17 3 weeks ago

    "In addition, CEO Brian Farrell has accepted a 50 per cent pay cut, from $718,500 to $359,250, for a one-year period beginning 13th February 13."

    Gasp, how will he survive on such a meagre salary? :rolleyes:

  • xuiton #18 3 weeks ago

    that is nice of him to cut his massive salary in half for one year only. I bet this guy just sits there having meetings and approving projects. while everyone else loses their jobs or works their arse off.

  • Obli #19 3 weeks ago

    Is the game market about to crash, I wonder... As a gamer for over 25 years, I'm nearly out (but then maybe I'm just getting too old!).

  • MikeRox #20 3 weeks ago

    @Obli I think something's going to give. Current business model just isn't going to hold together much longer. Hopefully it'll bring more indie development to the forefront.