Mozilla Corporation to lay off 250 people

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Harsirat Kaur
Harsirat Kaur
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Mozilla Corporation is a subsidiary of the Mozilla Foundation. It coordinates the development of the Firefox Web Browser. It has its headquarters in Mountain View, California, United States. Mozilla has decided to re-assess and re-evaluate its plan and focus more on the privacy products. The pre-Coronavirus plan had a different image for the company and its future.

New Announcement by Mozilla Corporation.

Mozilla Corporation announced in a blog post that it would be laying 250 people off its workforce. The company’s current employees are about 1000. With 750 people, the company’s spokesperson said that it plans to refocus some of its plans to make more money. Mozilla CEO Mitchell Baker wrote in a blog-post, “Going forward we will be smaller. We’ll experiment more.”

MOzilla to lay off 250 people
Mitchell Baker–Source: IDG Connect.

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Repercussions of Mozilla’s new decision

Two hundred fifty people will not continue their work in the company. They will receive severance to their full base way till December 31. Along with that, they will also receive the performance bonuses they gained in the first half of the year. COBRA health requirement benefits will be rendered to these employees too. The layoff will reduce Mozilla’s employees in the United States, Canada, Europe, Australia, and New Zealand.

The company’s Taipei, Taiwan operations have stopped working. We don’t know which departments will directly suffer from this. The company fired 70 employees earlier in January due to the slow sales of its products.

mozilla to lay off 250 people
Source: Wikipedia.

Baker said that the company will focus more on better options now, including sustainable improvements. The company wants to reduce development in developer tools, internal tooling, and platform feature development.

The main reason.

The main reason behind the layoff decision is reported to be revenue problems. Mozilla Corporation gets the majority of its revenue from search engines, like Google, Yandex, and Baidu. Ars, a Mozilla spokesperson, said, “Firefox’s revenue is subject to the overall trend of the search market and our product performance, versus a guaranteed payment.” The company has contracts with search engines which will expire in November 2020. These contracts do not provide guaranteed payouts. The new subscription packages launched in 2019 did not generate the revenue as predicted.

This is why the company wants to optimize its work with fewer resources. The blog post read, “Mozilla decided to take a more conservative approach, of not spending more than we earn for the foreseeable future.”

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