Mozilla today announced a major restructuring of its commercial arm, the Mozilla Corporation, that will see about 250 employees lose their jobs and the shuttering of the organization’s operations in Taipei, Taiwan. This move comes after the organization already laid off about 70 employees earlier this year. The most recent numbers from 2018 put Mozilla at about 1,000 employees worldwide.
Citing falling revenues because of the global pandemic, Mozilla’s executive chairwoman and CEO Mitchell Baker said in an internal message that the company’s pre-COVID plans were no longer feasible.
“Pre-COVID, our plan for 2020 was a year of change: building a better internet by accelerating product value in Firefox, increasing innovation, and adjusting our finances to ensure financial stability over the long term,” Baker writes. “We started with immediate cost-saving measures such as pausing our hiring, reducing our wellness stipend and cancelling our All-Hands. But COVID-19 has accelerated the need and magnified the depth for these changes. Our pre-COVID plan is no longer workable. We have talked about the need for change — including the likelihood of layoffs — since the spring. Today these changes become real.”
Laid-off employees will receive severance that is at least equivalent to their full base pay through December 31 and will still receive their individual performance bonuses for the first half of the year, as well as part of their company bonus and the standard COBRA health insurance benefits.
Mozilla promises that its smaller organization will be able to act more “quickly and nimbly” and that it will work more closely with partners that share its goal of an open web ecosystem. At the same time, Baker wants Mozilla to remain a “technical powerhouse of the internet activist movement,” yet she also acknowledges that the organization as a whole must also focus on economics and work on creating sustainable business models that still stay true to its mission.
“We are also restructuring to put a crisper focus on new product development and go to market activities,” writes Baker. “In the long run, I am confident that the new organizational structure will serve our product and market impact goals well, but we will talk in detail about this in a bit.”
On the product side, Mozilla will continue to focus on Firefox, as well as Pocket, its Hubs virtual reality project, its new VPN service, Web Assembly and other privacy and security products. But it is also launching a new Design and UX team, as well as a new applied machine learning team to help bring machine learning to its products.