Last I checked both were bigger than the number Mozilla has working on Firefox.
And yes, the people who were working on Firefox OS are now working on other things, and we _still_ don't have enough people to cover all the things that need doing...
Their market share is currently in the single digits on the desktop and they have virtually no market share on mobile which increasingly is more relevant than the desktop in terms of usage.
It's smart for them to decrease costs and maintenance burden right now while they still have the resources.
Firefox for Android has become really good, and I prefer it to Chrome, but my impression is that mobile users are very unlikely to stray from their default browser, even if it is just the blue globe "internet"