Adidas announced on Monday that its Chief Executive Kasper Rorsted will leave his post next year before his contract expires and that it has started looking for his replacement.

“After three challenging years that were marked by the economic consequences of the COVID-19-pandemic and geo-political tensions, it is now the right time to initiate a CEO transition and pave the way for a restart,” supervisory board Chairman Thomas Rabe said in a statement.

The group said Rorsted and its supervisory board had mutually agreed that the CEO would hand over his position during the course of 2023. He will remain in office until a successor has been appointed, it added.

Taking on the challenges of the past few years has required “huge efforts,” said Rorsted, who has been at the helm of Adidas since 2016.

“This is why enabling a restart in 2023 is the right thing to do - both for the company and me personally,” he said, without elaborating on his reasons for leaving. Adidas had in 2020 extended his contract until July 31, 2026.

The company cut its earnings target for 2022, citing a slower-than-expected recovery from pandemic restrictions in China.