One Championship cuts dozens of staff in push for profitability

Singapore-based combat sports organization One Championship has laid off “a few dozen” employees as part of a cost-cutting strategy to bring the company to profitability, The Business Times has learned.

In an internal email to staff on Wednesday morning, One Championship chief executive Chatri Sityodtong said the sports promoter was “on the verge” of profitability on the back of “record revenues and cost efficiencies” and had strong viewership numbers.

One Championship CEO Chatri Sityodtong / Photo credit: One Championship

The promoter has continued to achieve “new highs” in its key markets, especially across Asia, he said in the email seen by The Business Times.

He noted, however, that the external global macroeconomic environment remains “both challenging and uncertain” and that capital markets continue “to demand immediate profitability and profit maximization.”

“Many of the largest and most successful companies in the world have responded by cutting costs aggressively and actioning layoffs, and we unfortunately have no choice but to take this difficult step as well,” said Sityodtong.

“In a perfect world, we would keep everyone,” he wrote. “However, the reality is that our board of directors and shareholders all demand imminent profitability from One (Championship).”

According to regulatory filings, the company posted a net loss of US$61.7 million for its financial year ended December 2022, narrowing losses from the US$111 million loss it recorded the year before.

Its revenue rose to US$84.5 million for FY2022, up from US$67.7 million. Records for 2023 and 2024 were unavailable.

Founded in 2011 by Sityodtong and Victor Cui, One Championship is among Asia’s largest global sports media properties. Its mixed martial arts events are broadcast to more than 190 countries globally.

The promoter is operated by parent company Group One Holdings and counts Temasek Holdings among its institutional investors.

Headquartered in Singapore, One Championship has offices in Tokyo, Los Angeles, New York, London, Shanghai, Milan, Bangkok, Manila, Jakarta, and Bengaluru. It has between 201 and 500 staff members, according to its LinkedIn profile.

While Sityodtong did not reveal which markets were affected, a source close to the matter told the Business times that the layoffs were worldwide, with the Singapore workforce “hardest hit.”

The cuts were across departments, including client services, finance, marketing and public relations, broadcast, and esports, the source added.