Mixed Martial Arts (MMA) organisation ONE Championship laid off an unspecified number of employees yesterday (October 16), including those from its Singapore headquarters.
In an article published by The Straits Times, a virtual meeting was held with employees from all its offices yesterday morning. Chatri Sityodtong, CEO and founder of ONE Championship, announced the cuts. Those affected were to receive a call from their department heads, with the cut-off time being 7PM Singapore time.
On Wednesday, ONE Championship made the decision to lay off a few dozen employees as part of its overall strategic plan to bring the company to profitability in the coming months.
This decision was not made lightly and reflects our ongoing commitment to streamlining operations and focusing on long-term sustainability and growth.
A ONE Championship spokesperson responding to The Straits Times‘ media queries
An internal email was sent soon after, with the CEO announcing the layoff of “a few dozen superstar teammates” as “part of the overall strategic plan to bring ONE to profitability in the coming months.”
In the email, it stated that the layoffs were made despite the company being “on the verge of profitability through a combination of record revenues and cost efficiencies” as the “external global macroeconomic environment remains both challenging and uncertain” while the “capital markets continue to demand immediate profitability and profit maximisation”.
“Please know that your leaders and I weighed this difficult decision with painstaking detail and heartfelt empathy,” the email stated.
According to its LinkedIn profile, the company has a global staff strength ranging between 201 and 500. Besides Singapore, it has offices in Tokyo, Los Angeles, New York, London, Shanghai, Milan, Bangkok, Manila, Jakarta, and Bengaluru.
Its institutional investors include Temasek Holdings.
Rumours of layoffs were circulating internally
Although the company has not disclosed the exact number of employees affected in Singapore, an anonymous source familiar with the matter indicated that over 20 staff members, spanning departments like broadcast, e-sports, finance, marketing, and public relations, were laid off.
Here’s what this employee had to say:
It’s been a rumour for a long time that there were going to be layoffs. So I guess we weren’t really surprised it happened. I am surprised it happened to me.
There have also been rumours that the company is looking to move most of its operations to the Philippines or Thailand.
There is not much else to be said other than it was a great ride. I enjoyed my work. I enjoyed working with my good colleagues.
An affected employee sharing their thoughts on the layoffs to The Straits Times
Retrenched staff will receive severance pay and have their benefits extended to the end of the year, including their Evolve membership, access to Evolve gyms, and corporate health insurance. Those with stock options will have a 24-month window to exercise them.
However, it is worth noting that Chatri announced on social media in June that ONE will turn profitable and achieve positive cash flow in the third or fourth quarter of 2024.
A report by Bloomberg published this Monday (October 15) stated that according to sources, Group One Holdings, the company behind ONE Championship, had raised at least US$50 million (S$65.5 million) from investors, including Qatar Investment Authority.
Touted as Asia’s largest global sports media platform
ONE Championship was founded in 2011, and it held its inaugural event at the Singapore Indoor Stadium that same year. The company has since hosted nearly 300 live events across 13 countries and territories throughout Asia.
Over the years, it has housed many household MMA names, notably Demetrious Johnson and Eddie Alvarez, and nurtured stars of its own like the Lee siblings Angela and Christian, who have fought under the Singapore flag.
The company has been ambitious with its expansion plans. In 2019, the company launched two key business divisions: ONE Studios, its TV and film production arm, and ONE Esports in April and July, respectively.
However, the COVID-19 pandemic has heavily impacted the business, resulting in the company axing 20% of its global workforce in 2020.
Featured Image Credit: ONE Championship