I don’t think this should surprise anyone, given the new CEO they got and the announcement that was made immediately afterwards, followed by the layoffs. Fortunately, there are Firefox forks that we can switch to as a form of protest, provided that the forks keep these changes out of their codebases.
One thing I predict happening is that this move by Mozilla could spur more activities for the Firefox Forks. It would be a good opportunity for the developers of Mull, Librewolf, and Waterfox to think of ways to make their respective browsers stand out or be unique. Maybe we can one day see an Android version of Librewolf or a new web engine get developed in response to all this mess. Just a thought, of course.