Mozilla lays off 70 as it waits for subscription products to generate revenue

Mozilla laid off about 70 employees today, TechCrunch has learned. In an internal memo, Mozilla chairwoman and interim CEO Mitchell Baker specifically mentions the slow rollout of the organization’s new revenue-generating products as the reason for why it needed to take this decision. The overall number may still be higher, though, as Mozilla is still…

Mozilla lays off 70 as it waits for subscription products to generate revenue

Mozilla laid off about 70 employees today, TechCrunch has learned.
In an internal memo, Mozilla chairwoman and interim CEO Mitchell Baker specifically mentions the slow rollout of the organization’s new revenue-generating products as the reason for why it needed to take this decision. The overall number may still be higher, though, as Mozilla is still looking into how this decision will affect workers in the UK and France. In 2018, Mozilla Corporation (as opposed to the much smaller Mozilla Foundation) said it had about 1,000 employees worldwide.
“You may recall that we expected to be earning revenue in 2019 and 2020 from new subscription products as well as higher revenue from sources outside of search. This did not happen,” Baker writes in her memo. “Our 2019 plan underestimated how long it would take to build and ship new, revenue-generating products. Given that, and all we learned in 2019 about the pace of innovation, we decided to take a more conservative approach to projecting our revenue for 2020. We also agreed to a principle of living within our means, of not spending more than we earn for the foreseeable future.”

Mozilla has decided to lay some folks off and restructure things. All the leads in QA got let go. I haven’t been let go (so far). No idea what I will be working on or who I will be reporting to. Some good work friends let go 🙁
— Chris Hartjes (@grmpyprogrammer) January 15, 2020

Baker says laid-off employees will receive “generous exit packages” and outplacement support. She also notes that the leadership team looked into shutting down the Mozilla innovation fund but decided that it needed it in order to continue developing new products. In total, Mozilla is dedicating $43 million to building new products.
“As we look to the future, we know we must take bold steps to evolve and ensure the strength and longevity of our mission,” Baker writes. “Mozilla has a strong line of sight to future revenue generation, but we are taking a more conservative approach to our finances. This will enable us to pivot as needed to respond to market threats to internet health, and champion user privacy and agency.”
The organization last reported major layoffs in 2017.

Over the course of the last few months, Mozilla started testing a number of new products, most of which will be subscription-based once they launch. The marquee feature here is including its Firefox Private Network and a device-level VPN service that is yet to launch but will cost around $4.99 per month.
All of this is p
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