THQ to cut 240 jobs, CEO takes 50% pay cut

By Tom Ivan for computerandvideogames.com

THQ is to lay off up to 240 "selling, general and administrative personnel" as part of its recently revised business strategy.

The publisher said last month that it is to exit the kids' licensed games market and focus its efforts on core franchises and digital initiatives.

The majority of the staff cuts will be made by the end of the financial year on March 31, 2012, with the remainder implemented by October.

THQ also said in a regulatory filing that CEO Brian Farrell will take a 50 percent pay cut, reducing his base salary from $718,500 to $359,250, for one year starting on February 13, 2012.

The company expects its restructuring plan to cost around $11 million, with severance costs estimated at $8 million, contract terminations at $500,000, and possible charges related to abandoned assets up to $2.5 million.

THQ has been given until July 23 (180 days) to boost its share price or face being delisted from the Nasdaq stock exchange.