Enterprise

Mozilla downsizes as it refocuses on Firefox and AI: Read the memo

Comment

Firefox logo, Mozilla
Image Credits: Mozilla

After installing a new interim CEO earlier this month, Mozilla, the organization behind the Firefox browser, is making some major changes to its product strategy, TechCrunch has learned.

Specifically, Mozilla plans to scale back its investment in a number of products, including its VPN, Relay and its Online Footprint Scrubber. Mozilla will also shut down Hubs, the 3D virtual world it launched back in 2018, and scale back its investment in its mozilla.social Mastodon instance. The layoffs will affect roughly 60 employees. Bloomberg previously reported the layoffs.

Going forward, the company said in an internal memo, Mozilla will focus on bringing “trustworthy AI into Firefox.” To do so, it will bring together the teams that work on Pocket, Content and AI/Ml.

Mozilla started expanding its product portfolio in recent years, all while its flagship product, Firefox, kept losing market share. And while the organization was often sharply criticized for this, its leadership argued that diversifying its product portfolio beyond Firefox was necessary to ensure Mozilla’s survival in the long run. Firefox, after all, provided the vast majority of Mozilla’s income, but it also meant the organization was essentially dependent on Google to continue this deal. With these changes, it now looks like Mozilla may refocus on Firefox once more, something that will surely make many hardcore Firefox fans quite happy.

Here is the full internal memo:

Scaling back investment mozilla.social: With mozilla.social, we made a big bet in 2023 to build a safer, better social media experience, based on Mastodon and the Fediverse. Our initial approach was based on a belief that Mozilla needed to quickly reach large scale in order to effectively shape the future of social media. It was a noble idea but one we struggled to execute. While we resourced mozilla.social heavily to pursue this ambitious idea, in retrospect a more modest approach would have enabled us to participate in the space with considerably greater agility. The actions we’re taking today will make this strategic correction, working through a much smaller team to participate in the Mastodon ecosystem and more rapidly bring smaller experiments to people that choose to live on the mozilla.social instance.

Protection Experimentation & Identity (PXI): We’re scaling back investment in some of our standalone consumer products in the Security and Privacy space. We are reducing investment in market segments that competitors crowd and where it is challenging to deliver a differentiated offering. Specifically, we plan to reduce our investments in VPN, Relay, and Online Footprint Scrubber. We will maintain investment in products addressing customer needs in growing market segments.

Hubs: Since early 2023, we have experienced a shift in the market for 3D virtual worlds. With the exception of gaming, education, and a handful of niche use cases, demand has moved away from 3D virtual worlds. This is impacting all industry players. Hubs’ user and customer bases are not robust enough to justify continuing to dedicate resources against the headwinds of the unfavorable shift in demand. We will wind down the service and communicate a graceful exit plan to customers.

Right-sizing the People Team
Given the reduction in staffing and lower headcount budget moving forward in MozProd, some roles have been consolidated in the People and other support services orgs so that we are offering the right level of support to our product portfolio. Optimizing our org to sharpen focus.

In 2023, generative AI began rapidly shifting the industry landscape. Mozilla seized an opportunity to bring trustworthy AI into Firefox, largely driven by the Fakespot acquisition and the product integration work that followed. Additionally, finding great content is still a critical use case for the internet. Therefore, as part of the changes today, we will be bringing together Pocket, Content, and the AI/ML teams supporting content with the Firefox Organization. More details on the specific organizational changes will follow shortly. Within MozProd, there are no changes within MDN, Ads, or Fakespot. There are also no changes to Legal/Policy, Finance & Business Operations, Marketing, or Strategy & Operations.

Correction: in a previous version, we said Mozilla only launched its Online Footprint Scrubber last week. What Mozilla launched last week was a somewhat similar but different product, Mozilla Monitor. We have updated the story to reflect that.

What’s next for Mozilla?

More TechCrunch

Welcome to Week in Review: TechCrunch’s newsletter recapping the week’s biggest news. This week Apple unveiled new iPad models at its Let Loose event, including a new 13-inch display for…

Why Apple’s ‘Crush’ ad is so misguided

The U.K. Safety Institute, the U.K.’s recently established AI safety body, has released a toolset designed to “strengthen AI safety” by making it easier for industry, research organizations and academia…

U.K. agency releases tools to test AI model safety

AI startup Runway’s second annual AI Film Festival showcased movies that incorporated AI tech in some fashion, from backgrounds to animations.

At the AI Film Festival, humanity triumphed over tech

Rachel Coldicutt is the founder of Careful Industries, which researches the social impact technology has on society.

Women in AI: Rachel Coldicutt researches how technology impacts society

SAP Chief Sustainability Officer Sophia Mendelsohn wants to incentivize companies to be green because it’s profitable, not just because it’s right.

SAP’s chief sustainability officer isn’t interested in getting your company to do the right thing

Here’s what one insider said happened in the days leading up to the layoffs.

Tesla’s profitable Supercharger network is in limbo after Musk axed the entire team

StrictlyVC events deliver exclusive insider content from the Silicon Valley & Global VC scene while creating meaningful connections over cocktails and canapés with leading investors, entrepreneurs and executives. And TechCrunch…

Meesho, a leading e-commerce startup in India, has secured $275 million in a new funding round.

Meesho, an Indian social commerce platform with 150M transacting users, raises $275M

Some Indian government websites have allowed scammers to plant advertisements capable of redirecting visitors to online betting platforms. TechCrunch discovered around four dozen “gov.in” website links associated with Indian states,…

Scammers found planting online betting ads on Indian government websites

Around 550 employees across autonomous vehicle company Motional have been laid off, according to information taken from WARN notice filings and sources at the company.  Earlier this week, TechCrunch reported…

Motional cut about 550 employees, around 40%, in recent restructuring, sources say

The deck included some redacted numbers, but there was still enough data to get a good picture.

Pitch Deck Teardown: Cloudsmith’s $15M Series A deck

The company is describing the event as “a chance to demo some ChatGPT and GPT-4 updates.”

OpenAI’s ChatGPT announcement: What we know so far

Unlike ChatGPT, Claude did not become a new App Store hit.

Anthropic’s Claude sees tepid reception on iOS compared with ChatGPT’s debut

Welcome to Startups Weekly — Haje‘s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. Look,…

Startups Weekly: Trouble in EV land and Peloton is circling the drain

Scarcely five months after its founding, hard tech startup Layup Parts has landed a $9 million round of financing led by Founders Fund to transform composites manufacturing. Lux Capital and Haystack…

Founders Fund leads financing of composites startup Layup Parts

AI startup Anthropic is changing its policies to allow minors to use its generative AI systems — in certain circumstances, at least.  Announced in a post on the company’s official…

Anthropic now lets kids use its AI tech — within limits

Zeekr’s market hype is noteworthy and may indicate that investors see value in the high-quality, low-price offerings of Chinese automakers.

The buzziest EV IPO of the year is a Chinese automaker

Venture capital has been hit hard by souring macroeconomic conditions over the past few years and it’s not yet clear how the market downturn affected VC fund performance. But recent…

VC fund performance is down sharply — but it may have already hit its lowest point

The person who claims to have 49 million Dell customer records told TechCrunch that he brute-forced an online company portal and scraped customer data, including physical addresses, directly from Dell’s…

Threat actor says he scraped 49M Dell customer addresses before the company found out

The social network has announced an updated version of its app that lets you offer feedback about its algorithmic feed so you can better customize it.

Bluesky now lets you personalize main Discover feed using new controls

Microsoft will launch its own mobile game store in July, the company announced at the Bloomberg Technology Summit on Thursday. Xbox president Sarah Bond shared that the company plans to…

Microsoft is launching its mobile game store in July

Smart ring maker Oura is launching two new features focused on heart health, the company announced on Friday. The first claims to help users get an idea of their cardiovascular…

Oura launches two new heart health features

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI considers allowing AI porn

Garena is quietly developing new India-themed games even though Free Fire, its biggest title, has still not made a comeback to the country.

Garena is quietly making India-themed games even as Free Fire’s relaunch remains doubtful

The U.S.’ NHTSA has opened a fourth investigation into the Fisker Ocean SUV, spurred by multiple claims of “inadvertent Automatic Emergency Braking.”

Fisker Ocean faces fourth federal safety probe

CoreWeave has formally opened an office in London that will serve as its European headquarters and home to two new data centers.

CoreWeave, a $19B AI compute provider, opens European HQ in London with plans for 2 UK data centers

The Series C funding, which brings its total raise to around $95 million, will go toward mass production of the startup’s inaugural products

AI chip startup DEEPX secures $80M Series C at a $529M valuation 

A dust-up between Evolve Bank & Trust, Mercury and Synapse has led TabaPay to abandon its acquisition plans of troubled banking-as-a-service startup Synapse.

Infighting among fintech players has caused TabaPay to ‘pull out’ from buying bankrupt Synapse

The problem is not the media, but the message.

Apple’s ‘Crush’ ad is disgusting

The Twitter for Android client was “a demo app that Google had created and gave to us,” says Particle co-founder and ex-Twitter employee Sara Beykpour.

Google built some of the first social apps for Android, including Twitter and others