THQ to Lay Off 240 Workers, Reduces CEO Pay

As part of a previously announced restructuring plan to radically scale back, Agoura Hills-based THQ Inc. will lay off 240 workers, or more than 17% of its workforce, in the coming months, according to a report in the Los Angeles Times.

According to the report, the company also temporarily reduced the base annual salary of its chief executive, Brian Farrell, to $359,250, for one year starting Feb. 13.

The troubled game publishing company was once considered one of the industry's top players but it recently fell prey to a string of poorly performing releases, said the report. In addition, there's been a shift among consumers away from the types of console-based children's games which THQ produced to free or inexpensive games played on iPhones and iPads, said the Times.

In December, THQ announced it would market and focus instead on hard-core games like Saints Row: The Third, a Mob-themed game that sold 3.8 million copies since its release Nov. 15., said the report.

THQ said it expects to take an $11-million charge for severance costs because of the layoffs, the Times said. The company expects to report its December quarter financial results Thursday afternoon after the stock market closes, according to the Times.

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