Although Mozilla continues to improve its products, the organization is still struggling as the firm isn’t generating revenue from new products outside of the browser. And now, the organization has let go about 70 employees.
In an internal memo obtained by TechCrunch Mozilla chairwoman and interim CEO Mitchell Baker said the decision was taken in order to minimize cost as the organization continues to work on new products.
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. We also agreed to a principle of living within our means, of not spending more than we earn for the foreseeable future.”
In a blog post, Baker continued, “We’re making a significant investment to fund innovation. In order to do that responsibly, we’ve also had to make some difficult choices which led to the elimination of roles at Mozilla which we announced internally today.”
This decision isn’t particularly surprising considering Mozilla’s falling popularity in the browser market over the years. Although the company has tried to introduce a number privacy and online security-oriented features, they failed to attract the number of users the organization was hoping for. For instance, despite the changes, Mozilla currently holds only 9 percent of the browser market share while Chrome dominating the browser market with 67 percent.
On the other hand, the organization currently has a bunch of products including VPN services which haven’t particularly started to generate revenue for the company. As a result, it’ll be interesting to see how Mozilla addresses its problems over the coming months.