Native instruments layoffs redundancies one native

UPDATED STATEMENT: Native Instruments job losses and One Native strategy

It would be fair to say that Native Instruments has been the subject of much online chatter of late. None of it has been especially flattering, and all of it has been assorted levels of doom and gloom. But this Thursday saw a somewhat alarming development in the ongoing roller coaster ride of NI’s fortunes, one that required some clarification from NI HQ.

The nutshell version is that word reached us of a serious number of layoffs (100) at NI HQ in Berlin, by our reckoning a full 20% of global NI workforce. Some digging revealed that this impacted on all offices and in all departments. The moment when my first email to my usual contact in Berlin was met with an out of office telling me that he no longer worked at Native instruments was a body blow. And after reaching out to the upper echelons of NI, it was confirmed. Bugger.

Now I could have pieced together some sort of gossip-based click bait headline grabber designed to bring in heaps of traffic at the expense of the truth while pouring salt into an open wound. But instead I asked after an official statement, and was sent the following. To be clear — I’ve had this since Thursday, but agreed to hold off on posting until a point was reached where the rumours started to become more widespread and perhaps in need of something more official. I think a Reddit thread fits that description. And it’s probably better if NI people hear about it directly rather than reading it online.

UPDATE: Numerous stories and forum posts are popping up now. But I’m told that there will be another update to the above statement offering more detail on One Native.

Anyway, here you go:

Native Instruments centralizes organization and reduces global headcount to focus on platform strategy

Berlin, August 29, 2019 – Native Instruments, the world’s leading provider of software and hardware for computer-based music production, announced today a plan to centralize their global business operations, which includes a headcount reduction of 20% across all locations. The key reason for this difficult decision is to create the right organizational setup to focus on the development of a new, unified and fully integrated platform on which the company’s entire portfolio of products and services will be available next year. This change comes despite growing revenues in 2018 and the first half of 2019, but as a response to an increasing cost structure due to the company’s previous divisional setup and multi-brand approach.

“Today is a very emotional day for the Native community. We’ve been driving innovation in music creation since the 1990s. First through software instruments, then by expanding to an integrated ecosystem with complementing hardware and now by creating a unified platform experience for the modern music producer,” said Daniel Haver, the company’s CEO and co-founder. “To make this transformation successful, we needed to adapt our strategy, including a centralized functional setup that can support our vision of ‘One Native’. Unfortunately, this also means we had to make some tough decisions and part ways with a number of employees. This has been the hardest part of this transformation,“ he added.

Global headcount reduction of 20%

As a consequence of the company’s newly centralized organization to focus on its future strategy, Native Instruments had to make the difficult decision to reduce its workforce by around 100 employees across all sites. With most of the affected employees located at the company’s headquarters in Berlin, the departments that were impacted by the consolidation include Sales & Distribution, Marketing & Product Management, Administration and Engineering. All employees were informed about these changes on Thursday, August 29, 2019. The company regrets the impact this has on their employees, their families and the community. In addition to severance packages and outplacement services, Native Instruments has also established contacts with other Berlin-based companies that are currently looking for highly qualified personnel.

“This was the most difficult decision we had to make in our entire history, as our past successes have been enabled by the work of some of the best and most passionate people in the music industry. We thank all employees for their commitment, hard work, and their high degree of loyalty to Native Instruments. We are fully committed to doing all we can to take care of our employees impacted during this difficult time,” said Daniel Haver.

New platform starting in 2020

Recognizing changing customer behaviors worldwide, the aim of focusing on a unified platform strategy is to create an expandable commercial and technological basis for future growth in the digital music production area. For that, a new platform is currently being developed with the goal of offering new ways of accessing the company’s core products and services, as well as complementary ones from third-parties. The centralized platform will also include the company’s expanded portfolio of loops and samples, which is currently part of sounds.com, and will launch in 2020. The company’s previous divisional structure, functional and brand silos, did not allow for a successful implementation of this strategy up until this point.

“Customers today are expecting a seamlessly integrated experience when consuming and accessing creative goods and services. We are confident that we can offer music producers worldwide a unique and premium experience by connecting our existing ecosystem of award-winning software and hardware to a centralized online service,” said Mate Galic, Native Instruments’ Chief Innovation Officer and President. “In the past, we expanded in different product lines, which was also reflected in our organizational structure. Our platform vision, however, requires a much more collaborative approach, having all parts of the company work together towards one common goal.”

UPDATE: Some questions answered

If Native is building a new platform, why were resources cut?

Our new organization aims to break down functional and brand silos that have developed over time through the continuous expansion of our portfolio. Given our broad spectrum of products and the overlap between roles, it means that certain areas of product development are affected more than others by the redundancies. In the past, we have simply been doing too much at the same time and this strategic change as well as internal remapping of talent will allow us to move forward in a more effective and collaborative way.

With the focus on a platform strategy, do users need to be concerned about support for and investment in existing products?

We are fully committed to our existing brands Komplete, Maschine and Traktor. The reason why we are focusing on a platform strategy is actually to improve the experience for all users of our products. We strongly believe that by improving accessibility and usability of our portfolio, we will be able to provide an enhanced and more cohesive experience, both for existing and new customers. Rather than releasing more and more products, we want to ensure that users are getting the most out of our current products through a connected and unified experience.

Will Native Instruments continue to release integrated hardware?

Creating deeply integrated experiences between hardware and software remains at the core of our vision. However, we want to deliver more value to users of our hardware by implementing new features in the software that will allow for a better overall experience of our ecosystem.

What about the future of Traktor?

We continue to be fully committed to our DJ platform Traktor and its passionate users. Also within the DJ domain, we are focusing on improving the software experience, building on the creative and modular legacy of Traktor for both desktop and mobile. Supporting this, we are also continuing to evaluate the right accompanying hardware products. In fact, Traktor users can expect a new hardware controller this year.

Cutting to the chase

Native Instruments is moving to “One Native”, an online platform that aims to bring the brands together into a centralised hub. But in doing so, sadly there’s a 20% staff reduction across all departments in all countries, much of which is rationalising three disparate product teams (Maschine, Komplete, and Traktor) into one. Prior to this round of layoffs, NI had made around 30 engineers redundant as they did the first round of rationalisation.

At this point, it’s hard to tell if continuing difficult times has meant layoffs and prompted a new way of thinking, or if the new way of thinking came first and necessitates redundancies. It is however worth pointing out that according to industry sources, NI has been doing well sales wise at this point, which does indicate an appetite for NI’s current menu of music making stuff.

These are the facts, and that’s what I prefer to deal in. For obvious reasons, NI doesn’t care to comment more than the statement, and I’m not one to rub salt in the wound, for them or the vast number of people who have lost their jobs. But I feel it’s important for all of you to have a clearer and official picture of what’s happening.

I could turn this into an analysis piece, and pinpoint the time line of events and reasons for such a move, as well as working out exactly what form One Native will take. And I’m sure that in time I will dig into this in more detail. But for now, let’s hope that those who have been made redundant will find new jobs (many reading this will know those impacted), and that Native Instruments can pull through these difficult times and find a new way forward.

The Old Owner
  1. “20%” They fired about 150 people over the course of Fall 2018 up to before the 100 fired a week ago. That’s over 30%. I wish articles would mention that. Reddit shouldn’t have more info than the news.

    1. In fairness, NI hasn’t exactly been forthcoming with detailed breakdowns. It’s 20% this time around though. Can you cite sources for the 150 people who lost their jobs last year? I’m aware of a steady trickle of people leaving of their own free will, but not such a huge number of redundancies.

      And let’s be honest — Reddit and social media always has more info than news outlets. The difference is that I prefer mine to be official and authenticated. I deal in facts, not speculation. There’s enough fake news around.

  2. I’d say the fact they kept NHID a proprietary language was just stupid, they made pretty decent gear at a reasonable price but not everyone likes traktor, they tried to be pushy with the take “my way or highway” and most of us said see ya.

    1. Where are these “most of us”?

      9 years club owner, saw exactly 2 (of ca 200) guys changing the universe to serato or rekordbox dj. myself (switched back with s4mk3 few months ago) and a gas-addict that right now switches from denon prime back to traktor…

      1. Make that 3. Named/colored cue points, multi-sorting the playlist, customizable fx chains… even Flip. turns out Serato already has all of the things I want from DJ software. I’m still going to use Maschine for drum reinforcement, but I’m just so over Traktor. Knowing they’re not going to do anything new for at least a couple years as the mobile app matures, AND knowing they’re choosing to box themselves into whatever a SOC can do… man, F that noise. Politely.

        I’m due to buy a new controller anyway, and between the S4 mk3 and the DDJ, I’m taking the DDJ. The price is the same. The only difference is the software.

  3. UPDATE: Some more answers from NI.

    If Native is building a new platform, why were resources cut?

    Our new organization aims to break down functional and brand silos that have developed over time through the continuous expansion of our portfolio. Given our broad spectrum of products and the overlap between roles, it means that certain areas of product development are affected more than others by the redundancies. In the past, we have simply been doing too much at the same time and this strategic change as well as internal remapping of talent will allow us to move forward in a more effective and collaborative way.

    With the focus on a platform strategy, do users need to be concerned about support for and investment in existing products?

    We are fully committed to our existing brands Komplete, Maschine and Traktor. The reason why we are focusing on a platform strategy is actually to improve the experience for all users of our products. We strongly believe that by improving accessibility and usability of our portfolio, we will be able to provide an enhanced and more cohesive experience, both for existing and new customers. Rather than releasing more and more products, we want to ensure that users are getting the most out of our current products through a connected and unified experience.

    Will Native Instruments continue to release integrated hardware?

    Creating deeply integrated experiences between hardware and software remains at the core of our vision. However, we want to deliver more value to users of our hardware by implementing new features in the software that will allow for a better overall experience of our ecosystem.

    What about the future of Traktor?

    We continue to be fully committed to our DJ platform Traktor and its passionate users. Also within the DJ domain, we are focusing on improving the software experience, building on the creative and modular legacy of Traktor for both desktop and mobile. Supporting this, we are also continuing to evaluate the right accompanying hardware products. In fact, Traktor users can expect a new hardware controller this year.

    1. In fact, Traktor users can expect a new hardware controller this year.

      Probably, that’s the modular jog controller.
      If it’s just a chopped off deck section of the S4 (with motorized small jogs) it’s going to be their last Traktor hardware release – due to the lack of sales.

      1. don’t expect anthing. It will be basically a S2 with 4 channels, same build quality and controls as the S2. Nothing fancy at all. After that there will be zero NI Traktor hardware, All the other great concepts got buried!

        1. That sounds depressing.

          Competing manufacturers must be poppin champagne bottles right now for the great amount of talented people available on the market.

    2. Great, thanks!

      Not sure that adds much more clarity, but interesting news about the new Traktor controller!

      It’s the “accessibility” word that gets me worried about a shift towards consumerisation and entry level products. Accessibility has never been a problem. “Usability” is music to my ears though.

  4. Great article, thanks so much for your careful and measured reporting.

    I wrote the original analysis on Reddit that seems to have been making the rounds. I appreciate your restraint in sticking to the facts. I know we’ll be waiting for more detail on “One Native” soon. In the mean time, a lot of people are speculating so I’ve created a new thread for discussion over on Reddit:

    https://www.reddit.com/r/DJs/comments/czi49h/official_statement_from_ni_the_future_of_one/?utm_source=share&utm_medium=web2x

    I’ll leave the professional journalism to you guys since you’re doing such a great job at it. Thanks again for your great reporting.

    1. Thanks, but you did a serious good job in the past and now. I know NI was impressed.

      It’s always tough to know what to do at times like this. We’re all so accustomed to just reporting on emotionless gear, that when a real human interest story comes along we’re ill equipped to know what to write. This is made worse by the fact that a good number of the people impacted are friends.

      As I’ve said above, another statement is due – it was supposed to be last night, but I expect NI can take their time and get the messaging right. It’s too important to mess up. The focus on NI’s words will be sharp, especially between the lines.

      1. Hi Mark, that’s great, I really appreciate it.

        I hope the folks at NI understand any speculation or analysis of mine is purely driven out of concern for the company and hope for its future. I’ve also tried to be responsible with my speculation and clearly define what is pure opinion, my best guesses, etc. from more substantial claims. We’re lucky to have the official press like you around to help counterbalance any errors I or others may make,.

        I’m sure their next release will get a lot of attention. I wish them all the best and hope some good comes from this. I really hope they’re not going to bet the farm on user surveillance and intro-level software, but time will tell.

        Keep up the good work and thanks again.

        1. About entry level software — it has become clear that there’s little left to do in DJ software that will appeal to enough people to make money. New features tend to be more niche as time goes on, and at the same time harder to come up with and implement. Thus appealing purely to the top end of the DJ food chain is a fruitless venture. No DJ company will grow with this strategy. They’ll forever pander to the 1% who want more features, and never see a return on investment.

          The way to build is to get new DJs invested in your ecosystem. Get them hooked on your intro offering, and before long they’ll update to the full fat product. They’ll stay with you and become advocates for your ecosystem. This constant cycle will bring in enough fresh revenue to allow the features to be developed for the 1%, and thus the cycle continues.

          For NI to make this work, Traktor has needed a ground up rebuild so that new features can be added via plugins. Traktor DJ 2 is about as entry level as it gets, but its free and users will probably stick with it as it develops. And when it’s matured the plugins will come that add the 1% features. And if DJs subscribe, then the steady stream of revenue will keep the lights on and users of all levels satisfied.

          NI just needs to learn about entry level. The last videos of beautiful people dancing in a hopeless expensive loft apartment misses the mark by some margin. They need to remember that “bedroom DJ” means just that.

          1. I totally agree on the market share and am all for anything that keeps the company profitable and introduces new people to the art.

            My concern though, which I wrote about in a rather controversial thread on Reddit a few months ago (“DJ’s Against Streaming”, here: https://www.reddit.com/r/DJs/comments/c8nbf6/djs_against_streaming/?utm_source=share&utm_medium=web2x ) is that this will bias development resources towards entry level tools like DJ2 at the expense of necessary improvements and maintenance for higher end software.

            That’s the key bone to pick for me. Bring on streaming, free iPad mixing, cheap controllers, etc. But please don’t do it at the cost of giving Traktor everything it needs to remain competitive (library management, smart playlists, flexible beat grids, high resolution screens, performance enhancements, stability improvement, etc.) I’m not a Maschine or Kontact user anymore, but I’m sure similar things could be said about those product lines as well.

            That’s my main worry, especially if NI is under pressure to deliver more in the former category. There’s no doubt the future of NI is in entry-level, causal users. I just hope that it doesn’t come at the cost of higher end, more advanced applications like TP3.

            1. I think nonomomomo is correct. One need only to look at Mixvibes to see what happens when a major portion of their business (Cross DJ’s development) is ignored for a few years. Even if the new version 4.0.1 was superb (which it is not), there is a lost customer base they will never get back.

              1. It’s important to remember that companies like Mixvibes are small. They don’t have 20 developers ready to pounce on cool ideas. The resource is spread thin, especially when sale are hit because of huge competitors like rekordbox hitting the market. This is doubly annoying for them because a fair slice of rekordbox was developed by Mixvibes in the first place.

                So they have go to where growth is possible. Cross could be up there with the best, but they don’t have the marketing machine or budget to tell people how great it is, thus they need to find a new and more profitable avenue. Remixlive seems to be doing that for them right now. It’s an area that their traditional competition hasn’t really tapped.

          2. I disagree about that promo vid missing the mark. Bedroom DJs *are* the ones that have friends over and just play music, just not in a Berlin loft apartment. That video was more on-point than 99% of the ‘floating waveforms scratch routine’ vids, but a dank student halls of residence just doesn’t have the same attraction.

  5. Regarding Traktor: The no jogweels decision was a disaster, which is STILL not solved properly today with (CDJ-sized jogs).
    Ditto for elastic beatgrids, the #1 request on the famous “What The Hell Is Going On With Traktor?” interview.
    Ditto for video.
    Ditto for smart playlists.

    Pioneer and Rekordbox proved that the market wants all these features. The DDJ-1000 gives you the look and feel of the high end club standard for 1/5 of the price (assuming a laptop).
    Just look at the craze going right now with the 1000SRT; this is what the market wants.

    Instead, lots of effort was put on features that I, personally, do not use:
    – STEMS
    – remix decks
    – parallel waveforms
    – harmonic mixing

    On the latest features, i use heavily mixerFX

    —-
    As actions are stronger than words, on particular topic of the big Jogweels I’ve bitten the bullet and made a DDJ-1000 traktor mapping with jog screens. In my opinion, THAT is the kind of work that NI should be doing.

    Its also the #1 request at their forum:
    https://www.native-instruments.com/forum/threads/xdj-1000mk2-support-please.327453/page-17?fbclid=IwAR370i1QOwXzVxPvwBVVUd8rsxpd4tMz69gPkjm-fSnoBlb_2EaH5CXQPHE
    .
    .
    https://www.youtube.com/watch?v=h9tQZEHr8hk

    1. Wow, awesome job on the mapping!

      I was in the same situation (missing jogs & certain features) so I made the switch after 9 years.
      The DDJ-1000 is a beast!

    2. edited the initial comment to summarise:
      – I miss big jogs, elastic beatgrids, video, smart playlists.
      – I dont use STEMS, remix decks, harmonic mixing, parallel waveforms.

      The market wants the look and feel of the high end club standard for cheap price. The current craze of the 1000SRT is a good example.

      1. I know users appreciate your effort. Your points make a lot of sense and are intended to satisfy the demands of real users. And this is why you don’t work at any of these companies. ;)

        1. Thanks so much. What moves me is that some years ago, DJs could use any Software with any Hardware. This model is gone, so this mapping makes a small contribution for it.

          1. Exactly!
            NI customers have for years been asking for lots of stuff that never happened, jogs being one of the more prominent things.

            Even when they delivered a jog controller lately, it felt like they released it to attract new customers (motorized jogs are more likely for open format DJs than the average techno / house DJ that is the current core user group) vs. pleasing their loyal users.

            Will open format DJs (especially in the US) switch to Traktor?
            Nope, because Serato DVS, Rane Twelve, or even the SC5000M.

            Will NI’s core users buy it?
            Maybe not too many, because DDJ-1000 (read countless stories about people leaving Traktor to get that controller).

        1. Broadly speaking, you’re not necessarily wrong, but to blame job loss on just those features, in just one of their products, is hard to agree with. Yes, Traktor has been a little stagnant compared to other dj platforms, but Pioneer and Serato are not simultaneously operating and developing entire production suites. It makes perfect business sense to me that Traktor development has been dragging considering what else NI does, and it makes perfect business sense to consolidate those three platforms.

          Has the lack of Maschine integration with Traktor not also been a major feature request? Well here we go.

    1. I don’t agree with the characterisation of ditching jog wheels because the S8 supported DVS, and the existing S2 and S4 were still strong sellers. But if they’d updated the S2 and S4 at the same time, and presented the #futureofdjing with and without jog wheels as united front, then they may well have been in a different position now.

      The #futureofdjing gave the impression to many that Traktor’s future did not include the very thing that symbolises DJing for the vast majority. And that with hindsight was a marketing misstep for sure.

  6. I just downloaded the Traktor 3 demo. They still haven’t made the software compatible with high-res displays. Wow!! It’s been like 7 years. Text looks all jagged and blurry on my 2019 Mac-Book pro. I immediately uninstalled it.

  7. Toxic company. No strategy. Outdated hardware. Ran by seemingly incompetent leaders. 3 board members sacked in last few weeks, leaving the weird accountant guy, chief marketing officer (supposedly ex Google but no real substance and you cannot trust what he’s telling you., and the CEO and his sidekick – seemingly the weaker part of the 2. Despite massive investment, company is on the floor. No real leaders anymore, just ‘passionate’ musicians who get senior positions. Good leaders don’t stay long here. Latest is Mixmag article which is a damning indictment of the company culture at a time when racism and sexism and xenophobia are key global issues! Take note!
    There’s little or no customer care and staff are constantly lied to. After we lost over 100 colleagues on 1 day last fall we thought it could not get worse – wrong!