| Tobias Seifried
|
16.09.2024
In 2015, the successful start-up was acquired by the German sports articles giant for a reported 220 million euros. Now, 170 employees are losing their jobs in Austria.
Bad news for one of the first true success start-ups from Austria. As was announced on Monday, Adidas is closing its three local sites in Pasching (District Linz-Land), Salzburg, and Vienna. Initially, the Oberösterreichischen Nachrichten reported online about the plans, which have since been confirmed by the German sports article manufacturer via a press release. Adidas acquired Runtastic in 2015 for a reported 220 million euros and gradually took control. For instance, the main app was renamed to “adidas Running,” and “Runtastic” was completely removed from the company name.
170 employees affected
About 170 employees are affected by the site closures. The German parent company has already implemented cost-cutting measures several times in recent years. In 2023, 70 positions were eliminated, and the app “adidas Training” was discontinued. According to Adidas, the closure will happen gradually and is expected to be completed by mid-2025. The 170 affected employees will have the option to apply for positions at Adidas locations in Herzogenaurach, Amsterdam, and Saragossa. However, this would require relocation, making it doubtful that this offer will be widely accepted.
The last remaining app, “adidas Running,” will henceforth be operated from the three mentioned company locations. With this decision against the Austrian branches, Adidas aims to consolidate expertise and digital skills across fewer locations.
“We are in communication with the employees on how we can support them in this situation, whether in transferring to another adidas location or in professional reorientation,” Runtastic CEO Scott Dunlap is quoted in the press release.
Founded in 2009
Runtastic was founded in 2009 by Florian Gschwandtner, Christian Kaar, Rene Giretzlehner, and Alfred Luger, experiencing rapid growth in its early years. The running app quickly became the market leader. With the acquisition by Adidas, the four founders became multimillionaires. Florian Gschwandtner, the most well-known among them, left Runtastic in September 2018. Since then, he has co-founded several more start-ups and is actively involved as an investor.