Mozilla fired 70 employees amid restructuring

Mozilla Company announced about the restructuring. Mozilla's revenue continues to depend heavily on search engine royalties. Recently, there has been a decrease in such deductions, which in 2019 and 2020 were planned to be compensated through the development of new paid services (for example, Firefox Premium и Private Network) and non-search engine related areas. Ultimately, the forecasts did not come true, and the development of new paid services took longer than expected, so Mozilla intends to start "living within our means" and adapt in advance to possible pessimistic financial forecasts, for which it was decided to reduce costs by laying off employees.

Currently, Mozilla employs approximately 1000 employees worldwide, of which yesterday there were fired at least 70 people (7% of the total staff). Layoffs may still continue, as no final decision has been made on the reduction of workers from Germany and France.

The company's management also considered the possibility of closing innovation development fund, but decided not to do it yet, recognizing it as necessary for the development of new products (Mozilla allocates $ 43 million for the creation of new products). Mozilla will continue to invest in innovation as it considers working to improve the Internet one of its core competencies.

It is noteworthy that this is not the first wave of layoffs, in 2017 from Mozilla was fired 50 employees involved in the development of Firefox OS. This time the wave layoffs affected including engineers involved in testing quality (QA) security and release management. Also fired the developer of the code generator crane lift for web assembly.

Brendan Eich, creator of the JavaScript language and former CEO of Mozilla, hinted, that it is necessary to cut costs in another area and led the salary growth chart of Mitchell Baker (Mitchell Baker), chairman of the board of directors of Mozilla Corporation, depending on the fall in Firefox's market share. Since ухода Brenden Ike of Mozilla in 2014, Baker's compensation increased from $1 million to $2.5 million a year.

Mozilla fired 70 employees amid restructuring

Recall that, in accordance with financial report Mozilla for fiscal year 2018, Mozilla's revenue decreased by $112 million to $450 million, of which $429 million came from search engine fees (Baidu, DuckDuckGo, Google, Yahoo, Bing, Yandex), cooperation with various services (Cliqz , Amazon, eBay) and placement of contextual ad units on the start page. In 2018, $277 million was spent on development, $33.4 million for service support, $53 million for marketing, $86 million for administrative expenses, and $4.8 million in grants.

Source: opennet.ru

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