THQ's troubles continue to build as reports of layoffs have surfaced today along with news that the publisher is facing removal from the Nasdaq listings if it can't get its act together and raise its share price. Eurogamer discusses the layoff report:
A troubled THQ will imminently announce 170 layoffs, according to a new report. Independent industry suit Kevin Dent claimed to have been sitting on the news "for a week or so". His Twitter conversation with THQ's vice president of technology Mark DeLoura suggests this is for real.
"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 Mark DeLoura," broadcast Kevin Dent, directing the message at DeLoura. "A smart journalist would send THQ's VP of Tech Mark DeLoura an email and see what the auto reply says," Dent later wrote.
"Hey, that's cheating," DeLoura replied, smiley in tow.
MCV sums up the stock situation:
Troubled publisher THQ has been warned that it faces a possible de-listing from the Nasdaq stock exchange. The threat comes because the company’s shares have failed to top the $1 range for 30 consecutive days. That’s the minimum level required for a continued listing. THQ has been given 180 days (until July 23rd) to address the issue and boost its share price. It must maintain a $1+ level for ten consecutive business days. The company has failed to trade above $1 since the beginning of December.
There's no word on who the other people being let go are, and while nobody wants to see a layoff, one would hope that it's people from the businesses that THQ has previously announced that it's departing rather than employees from divisions that are cranking out content that is actually selling (e.g. Volition). Without a focus on childrens' software or uDraw, the company doesn't need studios cranking out more Spongebob titles. While in better economic times it's probable that those employees would be relocated or reassigned, considering how badly THQ needs to stop its money hemorrhage situation, cutting some people loose now may be the only viable option. For more on THQ's troubles, be sure to listen to Episode 75 of the Power Button podcast.