The operating system created by the Mozilla developer community as an open-source system failed to gain traction in mobile devices, according to a statement from Mozilla developer George Roter.
"Through the work of hundreds of contributors we made an awesome push and created an impressive platform in Firefox OS," he said in a blog post.
"However, as we announced in December, the circumstances of multiple established operating systems and app ecosystems meant that we were playing catch-up, and the conditions were not there for Mozilla to win on commercial smartphones."
In 2013, Mozilla announced a tie-up with Spanish-based GeeksPhone to introduce two low-cost devices powered by Firefox.
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Firefox devices made by China's ZTE and TCL were announced in 2014 at a cost as low as USD 25.
Roter said Mozilla made the decision as part of a push "to pivot from 'Firefox OS' to 'connected devices'" and would be focusing on developing open-source software for the Internet of Things -- a category which includes everything from connected cars to lightbulbs.