In 2015, the sporting goods supplier Adidas AG took over the fitness app developer Runtastic, based in Pasching in Upper Austria. The group has now decided to significantly streamline its activities in this business area. The Adidas Training app will be discontinued in the coming months, Adidas announced on Thursday. In this context, “approximately 70 of the existing 250 positions in our company would be eliminated,” said Scott Dunlap, CEO of Runtastic, in a statement.
In the future, the sports goods manufacturer wants to concentrate entirely on the “Adidas Running” app. In addition, Runtastic’s corporate structures would be “more efficiently aligned and projects and teams reduced,” the company explained.
As justification, Adidas stated that the corona pandemic had “strongly influenced and changed the demand for training and fitness apps in recent years”. “Particularly in terms of training, it has become clear to us that we can offer our users greater added value if we enter into partnerships with other fitness platforms,” explained Runtastic boss Dunlap in a statement.
The group is moving 20 jobs from its Swiss roots to Porto
The employees concerned were immediately informed of the decision, the company said. The step is “a very challenging one for all of us,” emphasized Dunlap. “We regret the impact of the decision and are doing everything we can to ensure that the change process is respectful. We know what skills and spirit our employees have and will support them as best we can to find a new, exciting job. To this end, we are already in contact with companies that need skilled workers to act as intermediaries.”
There is also restructuring at the Swiss location in Root, the headquarters of the subsidiary Adidas Sport GmbH. When asked by FashionUnited, the company said it plans to relocate around 20 positions from there to Porto, Portugal, thereby confirming the corresponding media reports. Adidas justified the step with “a simplification of our structures and processes in the area of product purchasing and planning”.