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Well running a server and no longer interacting with a service can be two different things. From an organizational standpoint I could absolutely understand them not wanting or needing the expense of another service to maintain. Even for just their own use. As long as they still have accounts and post to the fediverse. I don’t see a big issue
They’ll probably still have an instance in the sense that mozilla folks with have @mozilla.social addresses. That’s the kind of thing their hosting staff can easily administer on the side, and moderation is already covered by HR.