Adidas has been working on their wearable program, but possibly through another source as opposed to doing the production themselves. The focus would be on tech partnerships and fitness-tracking software developments to help build their own business rather than just produce the goods themselves. The German brand, has been investing heavily in the wearable tech market for quite some time now, and their own smartwatch is the greatest contribution from all these efforts.
It is unlikely now though, that we will see a fully Adidas branded smartwatch or wearable device anytime soon because of these efforts. Instead of working to produce a physical product, the company has been working on the development of software that could help existing wearable devices, such as the Runtastic App that they produced earlier in 2015. The news will not affect the release of the co-branded Adidas/fitbit smartwatch that is coming out soon. This product will hopefully be hitting shelves as soon as 2018, with success being another tricky category.
There are currently around 170 employees working in the wearable division of Adidas. These employees range from hardware engineers to data scientists. The roles will likely be affected by this new announcement, but those jobs will not ultimately be lost. Since the company is still aiming to produce some sort of technological advancements, the fact that it is not purely physical will not destroy this section of the brand. With one of their biggest competitors being Nike, it is difficult to stay in the industry. The hopes are high that the brand can help to profligate the greater wearable industry overall, as opposed to just becoming another competitor in an already quickly increasing market. As the year ends, it will be interesting to see what Adidas comes out with next.