Mozilla and Google have extended their current search deal for another three years.
Terms of the deal were leaked to ZDNet after Mozilla announced plans to lay off more than 250 employees last week. Mozilla's current search deal with Google was scheduled to expire at the end of the year.
Mozilla CEO Mitchell Baker announced the layoffs in a post. He said the company would restructure to build and invest in products and services that will give people alternatives to conventional big tech.
The new search deal means that Google remains Mozilla’s default search engine for Firefox until 2023, at an estimated cost between $400 million and $450 million per year.
Mozilla officials were expected to announce the search deal's extension in November, when the organization is scheduled to disclose financial results.
Deal terms were leaked to Inside Performance after Mozilla announced plans to lay off more than 250 employees last Wednesday in a move that had many users fearing for the browser maker's future. Mozilla's current Google search deal was scheduled to expire at the end of the year.
“Mozilla's long-term plan is to build its own revenue streams from subscription-based services and reduce its dependence on the Google search deal,” reports ZDNet.com.
The deal has historically accounted for between 75% and 95% of Mozilla’s yearly budget since 2006, when the two companies began collaborating. The pair took a hiatus between 2014 and 2017, when Mozilla signed a similar agreement with Yahoo.