THQ CEO Cuts Salary, 240 Employees Laid Off
In advance of a tense investor meeting planned for later this afternoon (Pacific time), THQ confirmed that things are as bad as critics, analysts and the rumor mill have suggested since December with a staggering reduction in their workforce. It has been confirmed that today, 240 THQ employees have been laid off. It is not known whether this total includes the 140 employees – including VP of technology Mark DeLoura – who were confirmed laid off yesterday.
In addition, The company will be jettisoning certain fixed costs estimated around $2.5 million, and will terminate contracts valued at 500K. THQ CEO Brian Farrell has also accepted a 50% reduction in salary. He will now be earning a still sizable $359,250 (down from $718,500). While this is unlikely to make a dent in the estimated 8 million in severance pay the company will soon be shelling out, it sends a signal, however superficial, that times are tough all over and that upper management is taking their licks along with the hoi polloi.
We recently suggested that in light of the company’s serious problems, Brian Farrell may find himself among those deemed redundant. A reduction in pay this significant may be designed to stave off that outcome. We’ll find out whether or not its successful this afternoon.