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GAMING NEWS

Report: 170+ Laid Off At THQ [UPDATED]

Posted on Wednesday, February 1 @ 14:52:00 Eastern by

[UPDATE]
According to an SEC filing, plans are in place to turn THQ around. This includes the elimination of up to 240 jobs and the pay cut of executives at the company to the tune of up to fifty percent:

On January 26, 2012, Company's management initiated a plan of restructuring in connection with the updated business strategy in order to appropriately adjust the Company's operating expenses to better align with the expected revenues under the updated strategy. The restructuring plan involves a realignment of the organizational structure resulting in reductions of up to 240 selling, general and administrative personnel worldwide. The majority of the restructuring plan is expected to be implemented by March 31, 2012, with the remainder completed by September 30, 2012.

CEO of THQ Brian J Farrell's salary will be cut 50%, from $718,500 to $359,250 for one year. Any lump pay tied to Farrell leaving or being fired without cause will be reduced by a third.

[ORIGINAL STORY]
There has been a whirlwind of rumors enveloping the financial illness at THQ and Independent Industry analyst Kevin Dent claims to know just how bad things are at the publisher of Warhammer, Saints Row, and more.

Via Twitter, Dent claimed:

This is probably going to break in the morning, I have sat on it for a week or so. The culling at THQ was 170+ souls including [VP of Tech] Mark DeLoura

A smart journalist would sent THQ's VP of Tech Mark DeLoura an email and see what the auto reply says

This rumor comes on the heals of a delisting threat to THQ on the Nasdaq stock exchange. Whether the report is true or not means little at this point. Things obviously aren't looking good for THQ in the middle of their rebranding and seachange from licensed IPs to hardcore games.

[Via]
Related Games:   Saints Row: The Third, WWE '12
Tags:   THQ


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Comments
  • Chunibrow
    Chunibrow

    Joined: Mar 2010
    Posted: Feb 1st, 2012 at 5:12 pm
    Very sad to see hardworking people getting the axe, especially in such a great industry, but I have to admit I could care less about losing any of THQs IPs
  • sliverstorm
    sliverstorm

    Joined: Jun 2007
    Posted: Feb 1st, 2012 at 5:23 pm
    This is actually a really good thing (and the market agrees--THQ's stock is up 7% on the day). If you read over the 8K filing, the plan is to release up to 240 selling, general and administrative personnel (i.e. the people who sell product, not the people who program games). If I had to bet, I would say that those are the people involved in pushing the Udraw tablet.

    Basically, THQ is a publisher with some good, top 100-selling IPs like Saint's Row and Darksiders and some good, top 100 licenses like WWE and UFC. What they don't have is the capital or the clout to make a push into hardware, and they've learned that the hardest way possible. If they just pare back their operations and focus on putting out quality, well-marketed games (instead of, say, overworking a ten-year old franchise and then dropping it into an icy river like a sack of mewling kittens), they'll make a fine merger target in 3-5 years. Especially if they can get longer-term contracts with WWE and UFC.
  • danielrbischoff
    danielrbischoff

    Joined: Nov 2009
    Posted: Feb 1st, 2012 at 7:00 pm
    Thumbs up!! The Udraw was practically a fluke on the Wii. Who knows how to predict that market. Bringing it to 360 and PS3 was horribly misguided.
  • Chunibrow
    Chunibrow

    Joined: Mar 2010
    Posted: Feb 2nd, 2012 at 12:43 am
    Wtf is a udraw

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