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70 employees, at a grossly over-estimated cost of $200,000 a year each (QA "leads" would probably cost a fraction of that), would cost Mozilla about $14M to retain. They are retaining their $43M budget for blue sky research intact (per TFA).

It feels like a better compromise could have been made.



This might be a sign for other employees that they need to focus on the things that can help Mozilla actually earn more and not just be a good guy. It may sound horrible, but considering their market share dynamics it makes sense.


Employees don't drive a large company's focus. Driving the focus and direction of the company is the job of Mozilla's leadership. It's the directors' job to transform that direction and focus into actionable plans, the managers' job to drive those plans, and the employee's job to implement the plans.

The employees, in all reality, don't have the power to drive the direction and focus of a large company; that's a benefit limited to startups and small businesses.


Bower's 1970 book "Managing the Resource Allocation Process" discusses how in reality it's the other way around. Leadership often struggles to manage the company strategically. Often how employees are measured (in this case looking at who was let go) drives strategy. For example, if a company states privacy is it's #1 goal but bonuses on revenue generation, privacy efforts may go nowhere.

With that in mind I think the parent comment is right. Leadership can say what they will but it's ultimately up to the people doing the work that drives the actual strategy.


If it's the employees who are really driving the company strategy and focus... the board needs to fire the everliving fuck out of the leadership (and optionally find the nexii of communication at the employee level and promote them).

It's quite literally leadership's primary job to set the strategy and focus of the company. It's what they're being paid to do. If they aren't doing that, they need to be let go.


It's a balance. Leadership does have a role here (and in some organizations like the military it is more strictly top down). But in most companies leadership can at most set goals, incentive behavior, and approve budgets and projects and it's ultimately up to the employees to implement and adapt strategy


>>But in most companies leadership can at most set goals, incentive behavior, and approve budgets and projects and it's ultimately up to the employees to implement and adapt strategy

No, leadership isn't exactly a glorified supervision layer.

I've known of a case where a director refused to promote an employee, the employee escalated the case to HR. The case got investigated and director in his defence said the employee couldn't be promoted as he was doing the same task for months.

To the director's horror he was let go for not seeing why the employee had not automated his work. And why he hadn't proactively worked with stake holders to improve productivity. So as far as the employee was concerned he had done what he was asked to, and despite bringing up his promotion issue in 1-1's the managers hadn't told him anything about his work at all. And instead lauded for the good work and asked him to continue.

The decision was right because the next director who came in got this done.

The job of any who sits at the top is to take a high level view, and move things in the positive direction. Approving leaves, budgets and memos just happens to be a side gig at those levels. The real job is to make progress happen.


> Employees don't drive a large company's focus.

Well today's announcement helps remove the 'large company' attribute.


Or it might be a sign for other employees (typically the ones the company would actually like to keep) to start looking for other, safer, jobs. Layoffs are always bad for morale...


Remember the PR disaster they had when they bundled Pocket?


Remember how it really didn’t matter at all in the long run? Even “disaster” is overselling it, I doubt many outside of HN circles are aware of it at all. Did they even lose a noticeable number of users from it?

I don’t mean to imply that it was absolutely nothing, but the day Mozilla gives up launching new money making features because they’re terrified of the backlash from an absolutely tiny set of vocal users is the day they should give up trying to make money at all.


It wasn't so much of a disaster as a poorly-considered move.

Speaking of Pocket, the Pocket you see on the fresh Firefox instance often provided me interesting, enjoyable articles. I went to sign up -- keep this good stuff coming, I thought -- to learn that Pocket demanded the social element, requiring that I link up with other Pocket users to drive my feed. Yet it had done a great job without that, and now had turned completely stupid.

Which of course is by design to drive engagement, and it is absolutely obnoxious. Fuck social as a trend. If the only way a network gains users is by trying to make them pitchmen to other people, the network should die.


Well, yeah, but focusing on earning does not mean they should start doing stupid things like that or adding a banner place to the start page.

For instance, I would have considered paying for some premium features like additional privacy-related functionality or a VPN.


Well, Mozilla is selling VPN services (in some countries). Are you a user?


200k may not be overestimated. Employees cost a lot more than their salaries. There's the employer share of payroll taxes, unemployment, health insurance subsidies, 401k matching, training, travel, etc.


Not to mention office space!


Like cutting the CEO's bonus for her obvious failure.

I hate that layoffs like this can happen, no executives take blame and they continue to make 4, 5, 10x what those laid off made.


Cost per employee can be much higher than their compensation. Maybe around 25% higher.


I don't know what Mozilla's benefits are like, but 25% may still be pretty conservative. Just payroll taxes and 401(k) matching can be ~15% of salary, before you take into account things like health insurance. At my company, I cost about double my actual salary.


Yes, I baked the employer tax and non-monetary compensation into the $200,000 estimation.


If most of their employees live in high COL areas like Mountain View, CA, then the 200K figure seems very fair. Maybe even low.


They don't appear to, however. For another response, I was looking at their 2019 financials, and for the Mozilla Foundation unit, 60 employees cost about $11M. I stand by my guesstimate of $200,000 as a high estimate.


I expect the foundation (which is largely non-technical) to have much lower average compensation than the corporation (which is predominately engineering-focused).


That 11M would, however, cover a lot of the leadership and directors, who are among the highest paid employees of the company.


It can actually be 100% higher in some countries.


Would love to see the compensation their board members and execs are claiming.


""" For VPs and above, we benchmark compensation against a blended peer group comprised of 70% similarly-sized public and private tech companies and 30% non-profit organizations. This approach serves to reinforce our mission-first orientation. Consistent with market best practice, at least 70% of compensation for senior leadership is “at risk” and tied to individual and company performance. """

The CEO (Mitchell Baker) made around $2.3M in 2017.


given the lackluster performance of firefox in recent years, and 70% being performance based, how has this number gone up? ($2.5M in 2018)


For the past couple of years the main measurable objective has been the second derivative of Firefox market share, ie. just slowing down the bleed was enough to get 100% (or over 100%) company performance based bonuses.


Because the benchmark went up.


Because the Mozilla Foundation is a non-profit, this information is public, at least partially! The latest numbers are from 2018.

https://assets.mozilla.net/annualreport/2018/mozilla-2018-fo...

Check out page 7.


> QA "leads" would probably cost a fraction of that

While I agree with the sentiment here, there is no need to diminish the work of QA people. They are a very important of the development process. A good QA is hard to come by and I often see them single-single handedly carry a project to completion despite working with a team highly incompetent "developers"(see what I did there).


Yeah, we have the chance of having a few good QA in our company and they are very important in getting the SW through the door not overly late and without too many serious defects


$200k doesn't just include salary; there's also equity comp, benefits, payroll taxes, etc. That can sometimes cause an employee's total cost to be at least 2x their salary.




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