Adidas has closed the business unit responsible for development of its sensor-enabled footwear and wearable devices, according to the Portland Business Journal report.
The move will affect the staff of 74 — including data scientists, experience designers, algorithm developers, and software and hardware engineers — which will likely get new positions within other divisions of the company.
The shuttering is reportedly part of Adidas’ realignment efforts to consolidate its digital offerings. From what we’ve understood, the company will now be operating two platforms: Runtastic, a GPS-guided exercise app/service that Adidas acquired in 2015, and a relaunched Adidas shopping app.
“We have redefined our strategic approach towards digital, sharpening our focus on digital experiences,” a spokesperson told Just-Style. “In this context we decided to discontinue running a stand-alone digital sports organization. Instead, we are integrating digital across all areas of our business and will continue to grow our digital expertise but in a more integrated way.”
That being said, we gotta wonder what will happen with the fitness and sleep tracking app All Day, which the company launched earlier this year. Is it going under, as well?
Meanwhile, Adidas’ rivals are taking the similar route: Nike has cut back on its fitness wearable efforts, while Under Armour has recently announced that it was killing its Health Box suite of devices.