Mozilla Firefox layoff 25% of employees despite Mega-Million deal with Google

Mozilla Corporation, best known for its Firefox web browser announced layoff for 250 employees globally, which is 25% of its total headcount. 

The primary reason for the layoff is the COVID-19 pandemic that took a toll on revenue. Additionally, Mozilla is shifting its focus to new areas such as browser-based VPN services and other security and privacy products that earn a higher income.

Mozilla has already launched its system-wide stand-alone VPN and wining the user through its speed, simplicity, and low monthly price.

Mozilla announced the severance pay for laid-off employees equivalent to base pay through December 31, and all health benefits by the end of this year.

The surprising fact is that Mozilla used pandemic slowdown as cover to reduce the 25% of its workforce; however, recently renewed a deal with google expects to bring $400m to $450m a year between now and 2023. More than 90 percent of Mozilla’s funding comes from web search providers who pay for default search engine in Firefox in their regions.

Firefox used to be the world’s second-most popular browser; however, its market share has gone down significantly. As per the Statcounter, Chromes has a 65.89% market share, Safari has a 16.65% market share, and Firefox has only 4.26% market share.

A Mozilla spokesperson told The Register: “Mozilla’s search partnership with Google is ongoing as Google is the default search engine provider in Firefox in many places around the world. We’ve recently extended the partnership, and the relationship isn’t changing.”

Despite the deal renewal with Google, which would bring its revenue for the next three years, Mozilla fired 250 of its employees and shut down its office in Taiwan, blaming the economic slowdown resulting from the global coronavirus pandemic. Mozilla has confirmed that it will publish the talent directory for layoff employees.

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