Mozilla and Google extended the existing Firefox search deal for another three years, alleviating the Firefox maker ‘s financial concerns.
The new Firefox search deal guarantees that Google will remain the default search engine provider within Firefox until 2023, at an estimated price of between $ 400 million and $ 450 million annually.
Mozilla officials are expected to announce an extension of the Firefox search deal later this fall, as the organization is set to unveil its 2019 financial figures in a month in November.
Terms of the new deal were leaked after Mozilla announced plans to lay off more than 250 employees, a move that raised many users’ concerns about the browser maker’s future.
The current Firefox search deal signed in 2017 between Google and Mozilla was due to expire at the end of the year.
However, several sources confirmed that the organization was financially sound, and that layoffs were part of its core business restructuring.
Mozilla has moved away from its current role in overseeing Internet standards and the experimental approach of its product listing towards more commercially viable offerings that generate revenue on their own.
Mozilla’s long-term plan is to build its own revenue streams from subscription-based services and reduce its reliance on the Google search bargain.
The Google search deal has historically represented between 75 percent and 95 percent of the organization’s entire annual budget since 2006 when the two companies began collaborating.
The layoffs reflect that plan, with Mozilla shutting down its threat management security team, software engineers working on the beta Servo browser engine, the developers who oversee the Mozilla Developer Network, and the team behind Firefox developer tools.
Sources described layoffs as a reduction in the number of staff in areas where the organization did not plan to prioritize.
The organization has scaled back its work on open standards and protocols in the short term, but it is not planning to phase out its work in the web development community.
Subscription-based services ensure the long-term viability of the business, and current plans include supporting and expanding its newly launched VPN service, as well as acquiring new technology ventures that can be seamlessly integrated into its product portfolio as stand-alone cash flows to generate revenue.
A Mozilla spokesperson said: The search partnership between Mozilla and Google continues, and Google’s search engine remains a default provider for Firefox searches in many places around the world, and we have recently expanded the partnership, and the relationship between us does not change.