Adidas has announced the closure of Runtastic locations in Austria. This decision impacts about 200 employees, although the running app will continue to operate under a different structure.
Adidas has revealed plans to shut down Runtastic offices in Linz and Wien, Austria. Approximately 200 employees were informed of their termination during a company meeting, as reported by several sources including “Oberösterreichischen Nachrichten”. Rumors about the closure had been circulating in the previous week, but Adidas had not provided an official statement until now.
Runtastic’s journey and acquisition
Runtastic, an Upper Austrian start-up, was founded in 2009 by Florian Gschwandtner, Christian Kaar, René Giretzlehner, and Alfred Luger. It quickly became a successful provider of sports apps. In 2013, Berlin-based media company Axel Springer invested 22 million euros in the company. In 2015, German sportswear manufacturer Adidas acquired all shares from the founders, Axel Springer, and other shareholders for 220 million euros. However, the success of the acquisition fell short of expectations.
Continuation of Adidas app
Tobias Seemann, Senior Vice President Global Digital & eCommerce at Adidas, told t-online: “Consolidating our digital competencies at a few locations is an important step to further develop our digital offerings in a targeted manner, provide our customers with the best possible digital experiences, and at the same time focus more strongly on Adidas’ core competencies.”
Seemann acknowledged that this decision presents a challenge for many employees and stated that the company would offer comprehensive support. Runtastic employees will have the opportunity to apply for positions at Adidas locations in Herzogenaurach, Amsterdam, or Saragossa. The running app “adidas running” will continue to operate from these locations.
Changes since acquisition
Runtastic has undergone several changes since its acquisition by Adidas. In 2018, Florian Gschwandtner stepped down as CEO and was replaced by US American Scott Dunlop. In 2022, Adidas reduced Runtastic’s brand value by 16 million euros in its annual report. Recently, the Runtastic brand name was dropped and replaced with “adidas running”. Last year, 70 of the original 250 employees were already laid off.
This closure marks a significant shift in Adidas’ digital strategy, as it consolidates its operations and refocuses on its core competencies while maintaining the popular running app under its own brand.
