Dunno what fuck biz this company do.
ONE Championship, the Singapore-based mixed martial arts (MMA) organisation backed by Temasek Holdings, laid off “a few dozen” employees on 16 October 2024 as part of a cost-cutting effort aimed at reaching profitability.
The layoffs, affecting approximately 30 to 40 employees at the Singapore office, occurred on the same day the company secured a US$50 million investment from investors, including the Qatar Investment Authority. This juxtaposition of retrenchments alongside fresh capital has raised concerns over the company’s financial management and long-term strategy.
The Economic Development Board (EDB) has confirmed its involvement, offering assistance to affected employees. EDB, which operates under Singapore’s Ministry of Trade and Industry, is working with ONE Championship to help the retrenched staff find new employment opportunities or engage in skills training.
In a statement to CNA, EDB acknowledged that companies periodically reassess their workforce and strategies due to market changes.
ONE Championship stated that the layoffs are part of its “overall strategic plan” to streamline operations and reach profitability.
This is the second significant retrenchment for the company, following a reduction of 20% of its global workforce in 2020 during the COVID-19 pandemic.
Despite the layoffs, CEO Chatri Sityodtong has previously expressed confidence in the company’s future, revealing in a June 2024 interview with the South China Morning Postthat ONE is on track to reach profitability this year after implementing several revenue-enhancing measures.
The retrenchments come as ONE has faced challenges in holding events in Singapore, with most of its recent shows taking place in Bangkok. However, the company has experienced substantial growth in other areas. In 2021, ONE secured a valuation of US$1.4 billion, and according to Chatri, it has since seen exponential growth in popularity metrics, which has driven significant revenue increases. Forbes magazine recently estimated ONE Championship’s current valuation at US$1.3 billion, though Chatri expressed his belief that the company is now worth more than that estimate.
Despite these positive financial projections, the timing of the layoffs alongside the announcement of a significant investment has led to questions about how the company is balancing its operational costs with its profitability goals.
One former employee, speaking to CNA on condition of anonymity, described the lead-up to the layoffs as tense, with rumours circulating for several weeks. A virtual company-wide meeting confirmed suspicions, as CEO Chatri Sityodtong informed staff that those receiving calls after the meeting would be laid off, similar to how layoffs were handled in 2020.
After the layoffs were announced, affected employees were immediately locked out of their work systems. Compensation packages reportedly included two weeks’ pay for each year of service, one month’s notice-period pay, and encashed leave.
The suddenness of the layoffs, combined with the company’s recent success in attracting investments, has caused frustration among staff.
These layoffs also come amidst broader retrenchment trends seen across Singapore.
Earlier this month, technology firm Dyson and electronics giant Samsung announced job cuts that impacted their Singapore-based employees, marking several high-profile retrenchments in recent weeks.
Temasek, through its subsidiary Heliconia Capital Management, invested a significant eight-figure sum into ONE Championship in 2016, during Mdm Ho Ching’s tenure as CEO.
This investment was seen as a strategic move to help ONE expand its presence across Asia and build itself into the region’s largest sports media property.
Mdm Ho, who led the sovereign wealth fund from 2004 to 2021, oversaw numerous high-profile investments, including the stake in ONE Championship.
Under her leadership, Temasek became known for making bold, long-term investments, even in sectors that carried considerable risk.
In a Facebook post on 26 November 2022, Mdm Ho addressed Temasek’s investment strategy following the write-down of US$275 million in its investment in the now-bankrupt cryptocurrency exchange FTX.
In the post, she emphasised that while losses are painful, Temasek’s ability to take a long-term view allows it to recover from setbacks.
“Some of Temasek’s best investments were made by being contrarian,” she noted, though she did not specify examples.
She added that Temasek’s financial strength allows it to make contrarian bets because it “can think long term” and is not influenced by short-term market movements.
Mdm Ho’s comments underline the philosophy behind Temasek’s investment decisions, including its stake in ONE Championship.
While the 2016 investment was aimed at positioning ONE as a dominant force in Asian sports media, the company has faced ongoing challenges in achieving profitability, as evidenced by the latest round of retrenchments.
Temasek itself remains a financial powerhouse, managing assets worth S$389 billion as of March 2023, a slight increase from S$382 billion the previous year. However, the company has faced a volatile market environment, posting a modest 1.6% shareholder return for the year, a small recovery from a negative 5.07% return in 2022, the worst since 2016.
Mdm Ho’s remarks on the risks of contrarian investments, such as those into ONE Championship and other ventures, suggest that Temasek continues to balance high-reward opportunities with the inherent risks of investing in innovative but unproven sectors.
Temasek-backed ONE Championship retrenches dozens, with EDB offering assistance to affected employees - The Online Citizen
The Online Citizen20 October 2024ONE Championship, the Singapore-based mixed martial arts (MMA) organisation backed by Temasek Holdings, laid off “a few dozen” employees on 16 October 2024 as part of a cost-cutting effort aimed at reaching profitability.
The layoffs, affecting approximately 30 to 40 employees at the Singapore office, occurred on the same day the company secured a US$50 million investment from investors, including the Qatar Investment Authority. This juxtaposition of retrenchments alongside fresh capital has raised concerns over the company’s financial management and long-term strategy.
The Economic Development Board (EDB) has confirmed its involvement, offering assistance to affected employees. EDB, which operates under Singapore’s Ministry of Trade and Industry, is working with ONE Championship to help the retrenched staff find new employment opportunities or engage in skills training.
In a statement to CNA, EDB acknowledged that companies periodically reassess their workforce and strategies due to market changes.
ONE Championship stated that the layoffs are part of its “overall strategic plan” to streamline operations and reach profitability.
This is the second significant retrenchment for the company, following a reduction of 20% of its global workforce in 2020 during the COVID-19 pandemic.
Despite the layoffs, CEO Chatri Sityodtong has previously expressed confidence in the company’s future, revealing in a June 2024 interview with the South China Morning Postthat ONE is on track to reach profitability this year after implementing several revenue-enhancing measures.
The retrenchments come as ONE has faced challenges in holding events in Singapore, with most of its recent shows taking place in Bangkok. However, the company has experienced substantial growth in other areas. In 2021, ONE secured a valuation of US$1.4 billion, and according to Chatri, it has since seen exponential growth in popularity metrics, which has driven significant revenue increases. Forbes magazine recently estimated ONE Championship’s current valuation at US$1.3 billion, though Chatri expressed his belief that the company is now worth more than that estimate.
Despite these positive financial projections, the timing of the layoffs alongside the announcement of a significant investment has led to questions about how the company is balancing its operational costs with its profitability goals.
One former employee, speaking to CNA on condition of anonymity, described the lead-up to the layoffs as tense, with rumours circulating for several weeks. A virtual company-wide meeting confirmed suspicions, as CEO Chatri Sityodtong informed staff that those receiving calls after the meeting would be laid off, similar to how layoffs were handled in 2020.
After the layoffs were announced, affected employees were immediately locked out of their work systems. Compensation packages reportedly included two weeks’ pay for each year of service, one month’s notice-period pay, and encashed leave.
The suddenness of the layoffs, combined with the company’s recent success in attracting investments, has caused frustration among staff.
These layoffs also come amidst broader retrenchment trends seen across Singapore.
Earlier this month, technology firm Dyson and electronics giant Samsung announced job cuts that impacted their Singapore-based employees, marking several high-profile retrenchments in recent weeks.
Contrarian investments by Temasek
The company’s ability to raise significant capital while cutting jobs has raised questions about its long-term strategy, particularly in light of its history with Temasek Holdings, a key investor.Temasek, through its subsidiary Heliconia Capital Management, invested a significant eight-figure sum into ONE Championship in 2016, during Mdm Ho Ching’s tenure as CEO.
This investment was seen as a strategic move to help ONE expand its presence across Asia and build itself into the region’s largest sports media property.
Mdm Ho, who led the sovereign wealth fund from 2004 to 2021, oversaw numerous high-profile investments, including the stake in ONE Championship.
Under her leadership, Temasek became known for making bold, long-term investments, even in sectors that carried considerable risk.
In a Facebook post on 26 November 2022, Mdm Ho addressed Temasek’s investment strategy following the write-down of US$275 million in its investment in the now-bankrupt cryptocurrency exchange FTX.
In the post, she emphasised that while losses are painful, Temasek’s ability to take a long-term view allows it to recover from setbacks.
“Some of Temasek’s best investments were made by being contrarian,” she noted, though she did not specify examples.
She added that Temasek’s financial strength allows it to make contrarian bets because it “can think long term” and is not influenced by short-term market movements.
Mdm Ho’s comments underline the philosophy behind Temasek’s investment decisions, including its stake in ONE Championship.
While the 2016 investment was aimed at positioning ONE as a dominant force in Asian sports media, the company has faced ongoing challenges in achieving profitability, as evidenced by the latest round of retrenchments.
Temasek itself remains a financial powerhouse, managing assets worth S$389 billion as of March 2023, a slight increase from S$382 billion the previous year. However, the company has faced a volatile market environment, posting a modest 1.6% shareholder return for the year, a small recovery from a negative 5.07% return in 2022, the worst since 2016.
Mdm Ho’s remarks on the risks of contrarian investments, such as those into ONE Championship and other ventures, suggest that Temasek continues to balance high-reward opportunities with the inherent risks of investing in innovative but unproven sectors.
