Edition TechCrunch reportedthat 70 of 1,000 Mozilla employees worldwide were laid off, as the organization’s hopes for non-search revenue sources were not realized. Other employees may wait for reductions in the future, as Mozilla still studyinghow all this will affect branches in the UK and France.
“Perhaps you remember that in 2019 and 2020, we expected to receive revenue from new products by subscription, as well as higher revenues from sources not related to the search. This did not happen, writes Mozilla interim head Mitchell Baker in a letter to employees. – In our plan for 2019, we underestimated how much time it will take to create and release new income-generating products. Given the experience gained in 2019 and what we learned about the pace of innovation, we decided to use a more conservative approach to forecasting income for 2020. We also agreed that we need to live within our means and in the foreseeable future not to spend more than we earn. ”
It is also reported that the leadership of Mozilla was considering closing its own Mozilla innovation fund, but so far it has been decided that it is needed to continue developing new products, for which the organization allocates a total of $ 43 million.
The fact is that for many years, the main source of income for Mozilla has been search. Companies pay hundreds of millions of dollars to become the default search engine in Mozilla Firefox. Google has been Mozilla's main customer for many years, but Mozilla has also made deals with Yahoo !, Yandex, Baidu, and other search engines. In recent years, these transactions have provided over 90% of Mozilla's revenue.
As Firefox’s market share is gradually decreasing and the dependence of revenues on partnerships with search engines (which are also declining) is understandable concern, the Mozilla management is looking for new sources of income. Basically, these are various subscription products that have nothing to do with search. For example, an organization is developing its own VPN service, which will be available by subscription for $ 4.99 per month (while the service is not yet available to the general public). Mozilla also offered a support option for companies for $ 10 per user, but quickly abandoned the idea, saying that it was still exploring the corporate segment.