Google Deal Should Keep Mozilla Afloat for Years

Posted on August 14, 2020 by Paul Thurrott in Cloud, Google, Mozilla Firefox with 23 Comments

Mozilla has extended its search deal with Google for five years and will receive over $400 million each year for keeping Google as the default search engine in Firefox.

“Mozilla’s search partnership with Google is ongoing, with Google as the default search provider in the Firefox browser in many places around the world,” a Mozilla statement notes. “We’ve recently extended the partnership, and the relationship isn’t changing.”

Mozilla first confirmed the extension to The Register, which noted that it came just as the browser company was announcing massive layoffs and its plans to move forward as a smaller company. The publication says that Mozilla will earn between $400 million and $450 million each year through 2023 from the agreement, which ensures that Google will be the default search service in Firefox. Mozilla apparently earns over 90 percent of its revenues from this kind of deal.

The Register has some other interesting data about Mozilla, too: When this non-profit had a headcount of 1000 employees in 2018, its staffing costs were $286 million per year, or $286,000 per person. But with a vastly reduced headcount today, the Google search deal alone should float the company while it tries to improve Firefox and its other products to be more competitive. (Obviously, there are other costs associated with running a company such as Mozilla.)

“The role reduction and restructuring Mozilla just announced allowed us to adjust our finances to ensure stability over the long term, strengthening our ability to build and invest in products and services that will give people alternatives to conventional Big Tech,” Mozilla confirmed.

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