Mozilla has announced the layoff of 70 employees and more layoffs are expected at Mozilla as it struggles to generate revenue from its new subscription products. The announcement is based on an internal memo by Mozilla chairwoman and interim CEO Mitchell Baker, Techcrunch reported.
Mozilla’s last layoff took place in 2017. Mozilla might further slash jobs in the UK and France, but it is still in the consultation process based on labour law. The tech giant is analysing how the move could affect its employees in the two countries.
Baker said in the memo that, “We are doing this with the utmost respect for each and every person who is impacted and will go to great lengths to take care of them by providing generous exit packages and outplacement support.”
In 2018, Mozilla Corporation said that it had 1,000 employees worldwide. The organisation had expected to generate higher revenue in 2019 and 2020 from new subscription products and from sources outside of search, the media reported.
According to Mozilla’s Baker, employees affected by the layoff will receive a generous exit package and outplacement support. The organisation has been testing new-generation products over the last few months. They are mainly subscription-based products. Mozilla’s most-anticipated projects Firefox Private Network and virtual private network (VPN) would cost around $4.99 per month, the media reported.
The organisation aims to create more revenue channels and reduce dependence on search partnership revenues. In 2018, Mozilla’s financial reports showed that nearly 91 percent of its royalty revenue was generated from source contacts.