Snapchat parent Snap Inc will stop future development of its Pixy flying selfie drone, the Wall Street Journal reported on Thursday, citing people familiar with the matter. Pixy, which costs $230, will continue to be sold in its current iteration, according to the report. Also Read - Snap is laying off 20 percent of its workforce: Report
The news comes nearly four months after the Santa Monica, California-based company launched the pocket-sized camera, which can fly a few feet above its user to take photos and videos. Also Read - Snapchat introduces new creative feature Dual Camera: Here's how to use it
Snap declined to comment on the report. Also Read - Snapchat Plus reaches 1 million paying subscribers in just six weeks
Rising costs and other economic woes have forced companies to curb their marketing spend, hurting ad-reliant online companies such as Snap Inc, Facebook-parent Meta Platforms, Twitter Inc and Pinterest Inc.
Last month, Snap had warned of “incredibly challenging conditions” due to the current economic turmoil and increasing competition after reporting disappointing results.
The company, which is reeling from privacy changes made to Apple Inc’s (AAPL.O) iPhone, had also said it would significantly slow hiring, invest in its advertising business and find new sources of revenue as part of its belt-tightening efforts.