Saints Row – The Third: THQ Scheduled to Lay Off 240
We keep hearing about job layoffs in the video game industry, especially from THQ. THQ is planning to fire 240 employees. These employees belong to its sales, administrative and general departments. This move is supposed to be part of the company’s modified business strategy.
Last month, the publisher said that it will no longer be pursuing the market for kids’ licensed games. It plans to put all its energies to its core franchise and digital projects. Most of the laying off will happen by March 31, 2012, which is the end of the financial year. The rest of the employees that will let go will be permanently removed in October. The business strategy change will not only entail the laying off of employees but will also cut CEO Brian Farrel’s pay in half. His base salary will then be reduced from $718,500 to $359,250 for the year starting February 13, 2012. Why are all these changes happening anyway? Why does it involve a lot of layoffs and even decrease in salary? Well, THQ believes that its plan to restructure the company will amount to about $11 million, which obviously is a lot of money. There will also be possible expenses or charges associated with abandoned assets that could total to $2.5 million.
THQ has to make drastic changes because it does not have a good standing with the Nasdaq stock exchange. The company has been given only up to July 23, 2012 so that its share price will be released. If it is not able to do so, it can be delisted from Nasdaq. What do you think of THQ’s decision to layoff several employees and to cut down even its CEO’s salary in half? We guess that desperate times call for desperate measures. Maybe THQ is not really happy with its moves but does not have much of a choice.