TheCorporation announced a major restructuring. 250 jobs are lost. The aim is to reduce costs in order to adapt spending to changes triggered by the COVID-19 pandemic. According to CEO Mitchell Baker, the “pre-COVID plans are no longer viable”.
Baker emphasized that Mozilla had tried to minimize the financial impact of the corona crisis with immediate measures. For example, no new employees have recently been hired and certain additional financial benefits for employees have been abolished. “We have been talking about necessary changes, including possible layoffs, since spring. Today these changes are real. “
As part of the downsizing, Mozilla announced the closure of its office in the Taiwanese capital Taipei. The company also emphasized that the employees concerned were not selected on the basis of “personal or professional qualities”. Mozilla is also parting with very experienced employees.
According to the company, the more than 250 people affected will receive a severance payment and the planned bonus payments for the first half of 2020. In addition, Mozilla wants to support its former employees in their search for a new job.
The restructuring also means that Mozilla is rethinking its business model and focusing more on financially viable products in the future. Baker left open which products would be. However, that introduced last month should play an important role-Play offer that should benefit from Mozilla’s reputation for putting user privacy first.
A big question mark is currently hanging over Mozilla’s most important source of income, the search agreement. The Internet company pays for a search engine to be preset in the Mozilla Firefox browser. The current contract ends this year – it has not yet been renewed. The market share of Firefox, which according to Net Applications fell from 8.12 to 7.36 percent this year, should play an important role. In 2019 Firefox started with a share of almost 10 percent.
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