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Read More. The Mozilla Corporation announced today it was laying off approximately staff members in a move to shore up the organization's financial future. The layoffs were publicly announced in a blog post today. Baker's message cited the organization's need to adapt its finances to a post-COVID world and re-focus the organization on new commercial services.
Baker said that after the onset of the COVID pandemic, Mozilla attempted to minimize the healthcare crisis' financial impact with "immediate cost-saving measures such as pausing our hiring, reducing our wellness stipend and cancelling our All-Hands [meetings]. Today these changes become real," the Mozilla CEO said today.
Another 60 or so people will change teams. The people who are included in the reduction are both true Mozillians, and professionals with high degrees of skill and expertise and commitment. This action is not in any way - not, not, not - a reflection on personal or professional qualities. The company also plans to publish a " talent directory " where it plans to advertise the skills and experience of the staff members it laid off today if employees agree to have their names listed. We haven't raised money in like, six years or something.
So we don't really talk to new investors, or at least haven't in a very long time. But the novel task gave Barrett an opportunity to explain the company's main focus: the small and medium-sized business market. Investors don't always get it, he said. That's cute and all. But when are you going to start thinking about the real enterprise?
Expensify does offer its expense management tools to big corporations, but the Portland, Oregon-based company sees SMBs as its core market.
Barrett explained why in an interview with Protocol. He also talked about Expensify's game plan, his views of the expense management software market and how the company has adapted to the pandemic.
Barrett, who became famous for scathing criticisms of the Trump administration , also shared his views on President Biden's performance. It's pretty hectic basically talking to every hedge fund and investor in the world in the past week or so.
We're kind of out of practice, honestly. We don't really raise money. It's been fun to get back out there and talk with people and share the vision and hear people like, "Wow, you guys have been busy.
I don't know if there's a particularly hard question to answer after you've answered the same questions 50 times in a row. Maybe one of the most persistent questions — though we didn't get this as much as I expected — more often than not, people are like, "OK, so you're this payments super app in SMB. What makes Expensify special, fundamentally, is that we have a completely different business model.
Everyone else in our industry has a top-down acquisition model. They've got a sales team calling into the CFO or whatever. And that model works fine, but it only works in a tiny corner of the marketplace and it's the same market that everyone else was going after. Our competition is email and Excel.
It's like a manila envelope stuffed full of receipts that is the actual competition. And no one is defending it. Our competitors use the same business model. You buy a list of CFOs and then you call that list from top to bottom and then you put them through a qualification [process]. They're all calling the same people off the same list with the same message, selling the same product. And, shocker, it's really hard to compete when you're exactly the same as everyone else.
Our approach is starting with the employee, and then they pull us into the company. The bulk of our revenue is subscription revenue that comes from companies between, let's say, 10 and employees. There's a view that B2C fintech has become increasingly hard, and a B2B approach is more cost-effective. I love that everyone thinks that because that's why they're all failing while we thrive. If you try to apply an enterprise business model in the SMB, those are really different markets.
The economics of top-down acquisition just do not scale well outside of the mid-market. I gotta go acquire it. We need to go to bigger businesses. We're different. We're like, "Screw the enterprise. We will be your very first accounting tool because way before you have revenue, you definitely have expenses.
Then we'll grow with you forever. Business travel is back, which is great. We see a different slice of business travel than I think most because we're more of a Main Street business than a Wall Street business.
When people think of business travel, they typically think George Clooney in "Up in the Air," sort of flying around. And that happens. It's obviously a big deal. But there is a huge fraction of business travel which is just mileage, people driving around. My dad drove around all of Michigan essentially selling machine tools.
You drive to Toledo and you stop by the Home Depot and you pick up a whole bunch of materials for the job or something like that.
We get way more reimbursements for Home Depot than for United. Business travel is a very humble affair for a huge fraction of our customers. How do you view the market environment going forward, given that we're still in a pandemic? The pandemic was basically the ultimate stress test of our business model. I think we've weathered it pretty fine. Going forward, so long as we don't have an even worse pandemic, I think we're gonna be just fine.
I'm actually quite optimistic, and I think that our customers are as well. I think we feel we're through the worst of it. I think there's a ton of reasons to be super optimistic, honestly. And I think that that's why we're excited about it. You were very critical of the previous administration. What do you think of the job President Biden is doing?
Is there anything that the new administration has done that you are critical of? I think the vaccine mandates are some really hard calls. I can see value in both perspectives. Obviously the vaccines work and they're wonderful, but at the same time, I think your body is your ultimate line of sanctity. These are really hard issues. I don't know that I have a real clear opinion to be honest. I think that it's a muddy process.
A vaccine or pulling out of Afghanistan — these are huge, multitrillion-dollar issues. These are not clean issues. No one's gonna just knock it out of the park. I think that Biden's doing a great job in the most important thing, and that is he's defending democracy. I feel very good about the prospects for democracy going forward under the Biden administration.
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