06 October 2017
Adidas has announced that it is shutting down its digital sports division and will not be making any wearable hardware.
The company stated that it will be discontinuing its standalone digital sports organization and is planning to focus on consolidating its app ecosystem. It will be focussing its efforts on the Runtastic and the Adidas app brand platforms.
“To further drive our digital transformation and win the consumer in this dynamic business environment, we’ve redefined our strategic approach toward digital, sharpening our focus on digital experiences,” the company said in a statement. “We will discontinue running a stand-alone digital sports organization and consolidate the Adidas app eco-system, focusing our efforts on two powerful brand platforms: Runtastic and the Adidas App. We are integrating digital across all areas of our business and will continue to grow our digital expertise in a more integrated way.”
Adidas had ditched plans of launching its standalone sports watch earlier this year. The company was planning to launch other wearable products in 2017, however, those plans have also been shelved. “We’re not going to see a new running watch from Adidas for a while.”
An Adidas spokesperson stated that the company will be reallocating its employees in the wearable division to other places in the organization. The spokesperson stated, “I don’t know that ‘layoff’ is the right word[…]hopefully finding them other places in the organization.”