garyopa
02-03-2012, 12:55 PM
Massive Layoffs, Leadership Pay Cuts Hit THQ
http://www.maxconsole.com/maxconsole/contents/RKLS0000001326/icon_xl.jpg
Facing a Wall Street delisting and flagging sales, publisher THQ today outlined plans for a massive restructuring that eliminates up to 240 jobs and cuts the pay of execs by as much as 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," according to an SEC filing (http://investor.thq.com/phoenix.zhtml?c=96376&p=irol-SECText&TEXT=aHR0cDovL2lyLmludC53ZXN0bGF3YnVzaW5lc3MuY29tL 2RvY3VtZW50L3YxLzAwMDA4NjU1NzAtMTItMDAwMDA1L3htbA% 3d%3d). "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."
Besides the CEO cutting his pay from $718,500 to $359,250 (but only for one year), the rest of the directors also get a 50% pay cut, plus THQ will have to fork over $8 million in severance pay and $500,000 in contract terminations, as they decided to stop making kids' licensed Video Games, and refocus on their core franchises.
The good news is those still working at Relic Entertainment, THQ San Diego, Vigil Games, Volition, and THQ Montreal will not be getting any 'pink slips', instead they will still be able to enjoy their daily cup of coffee at work.
NEWS SOURCE: Massive layoffs hit THQ (via) Subcathoin (http://subcathoin.tumblr.com/post/16883143488/massive-layoffs-leadership-pay-cuts-hit-thq)
Our thanks to 'Stevetry' for another great news story!
http://www.maxconsole.com/maxconsole/contents/RKLS0000001326/icon_xl.jpg
Facing a Wall Street delisting and flagging sales, publisher THQ today outlined plans for a massive restructuring that eliminates up to 240 jobs and cuts the pay of execs by as much as 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," according to an SEC filing (http://investor.thq.com/phoenix.zhtml?c=96376&p=irol-SECText&TEXT=aHR0cDovL2lyLmludC53ZXN0bGF3YnVzaW5lc3MuY29tL 2RvY3VtZW50L3YxLzAwMDA4NjU1NzAtMTItMDAwMDA1L3htbA% 3d%3d). "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."
Besides the CEO cutting his pay from $718,500 to $359,250 (but only for one year), the rest of the directors also get a 50% pay cut, plus THQ will have to fork over $8 million in severance pay and $500,000 in contract terminations, as they decided to stop making kids' licensed Video Games, and refocus on their core franchises.
The good news is those still working at Relic Entertainment, THQ San Diego, Vigil Games, Volition, and THQ Montreal will not be getting any 'pink slips', instead they will still be able to enjoy their daily cup of coffee at work.
NEWS SOURCE: Massive layoffs hit THQ (via) Subcathoin (http://subcathoin.tumblr.com/post/16883143488/massive-layoffs-leadership-pay-cuts-hit-thq)
Our thanks to 'Stevetry' for another great news story!