Meta Platforms, which runs Facebook, has decided to stop developing “Portal” and smart watches, a smart display device that provides video call functions, Reuters reported on the 12th (local time).

The news came at a town hall meeting between meta-management and employees.

Earlier, Meta also announced a massive reduction of 11,000 people as part of its cost reduction. Reuters reported that about half of the employees included in the cut are technology-related people.

In a town hall meeting with employees, Meta CEO Mark Zuckerberg reportedly said that as part of the restructuring, the company will combine voice and video call organizations with other messaging teams and create a new division called Family Foundations, focusing on difficult engineering issues

Meta CTO Andrew Bosworth, who leads Metabus business Reality Labs, including Virtual Reality (VR) and Augmented Reality (AR), announced to employees that it will suspend portal smart display devices and smartwatch projects.

Earlier this year, Meta decided to stop marketing portal devices to individual users and instead focus on corporate sales. In the midst of this, the company explained that meta-management has recently chosen a big change as the economy continues to shrink. “I felt it was wrong to invest time and money because it takes too long to enter the enterprise sector and requires a lot of investment,” CTO Bosworth said.

From a meta point of view, portal devices are a part of the business that is not very helpful for sales. Smartwatches have not even been released yet. “Smartwatch organizations will focus on augmented reality (AR) devices instead,” said CTO Bosworth. More than half of the total investment in Reality Labs is headed for AR, he said.