Taipei: Mozilla will lay off approximately 250 people and shut down its operations in Taipei, Taiwan, the company said in a blog post.
Mozilla CEO Mitchell Baker told employees that the company’s pre-COVID plan was no longer workable, as the economic conditions resulting from the pandemic had significantly impacted their revenue. Besides the layoffs, around 60 people from the organisation would also have to change teams.
“Pre-COVID, our plan for 2020 was a year of change: building a better internet by accelerating product value in Firefox, increasing innovation, and adjusting our finances to ensure financial stability over the long term,” Baker writes. “We started with immediate cost-saving measures such as pausing our hiring, reducing our wellness stipend and cancelling our All-Hands. But COVID-19 has accelerated the need and magnified the depth for these changes. Our pre-COVID plan is no longer workable. We have talked about the need for change — including the likelihood of layoffs — since the spring. Today these changes become real.”
Laid-off employees will receive severance that is at least equivalent to their full base pay through December 31 and will still receive their individual performance bonuses for the first half of the year, as well as part of their company bonus and the standard COBRA health insurance benefits.
Mozilla promises that its smaller organization will be able to act more “quickly and nimbly” and that it will work more closely with partners that share its goal of an open web ecosystem.
“We are also restructuring to put a crisper focus on new product development and go to market activities,” writes Baker. “In the long run, I am confident that the new organizational structure will serve our product and market impact goals well, but we will talk in detail about this in a bit.”