Adidas Shuts Down Digital Sports Department
Recent reports have revealed that Adidas has cut off their Digital Sports division, which implies that their wearables will be receiving no future. Furthermore, speculations on the development indicate that Adidas might be working towards a collaboration instead to enter the fitness technology market.
"When we think about digital that goes across everything, it's just the way of the world today," an Adidas spokeswoman told Women's Wear Daily. "In terms of if we are going to be making other changes across different departments, of course we're always looking to strategically get better and get closer to our consumer. I am not personally aware of any other plans but we are a company that is constantly evolving to connect with our consumer. It's just how it is, I'm sure, across the industry."
The Digital Sports business unit is made up of 74 employees scattered in Portland, Oregon, Germany, China, and other areas. When asked about what will become of the staffers that just recently lost their employment, the spokeswoman revealed that Adidas is working to hopefully distribute them in other parts of the company. The development is in line with the plans of Adidas' chief executive officer Kasper Rorsted, who is revamping the company to promote more digital experiences.
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Further reports reveal that despite the eradication of the department, Adidas has yet to rule out collaborations. In particular, Fitbit is expected to release an Adidas-branded Ionic smartwatch next year. Despite the recent development, the project still seems to be on track. Adidas began making their own wearable in 2001 but many of devices were overshadowed by the competition's top players, Apple and Fitbit. Considering their situation, the spokeswoman and Adidas' CEO is working toward infiltrating the market. No update has been released on the 74 employees. However, more information is expected to be revealed in the coming months.
