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Mozilla announces layoffs as new revenue streams fail to deliver

(Image credit: Image Credit: Mozilla)

Mozilla, the company behind the famed Firefox browser, has fired 70 people after deciding that its new products have failed to deliver on earnings.

In a statement posted on the Mozilla blog, the company chairwoman and interim CEO Mitchell Baker said the news is “difficult”, but necessary, given that the company wasn’t earning as much as it expected.

“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,” she wrote.

“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.”

She also said that the company will live within its means, meaning not spending more than what was earned, “for the foreseeable future”.

She said that the decision was made rather quickly (just before the holiday break), and that all of the employees that will be laid off, will receive “generous exit packages and outplacement support”.

Even though it was said that a total of 70 people would be laid off, Baker added that the number could be “slightly larger”, given that the company is still in a consultation process in the UK and France.