Meta Platforms Inc (NASDAQ:META) is shutting down Workplace, a version of Facebook tailored for business communication and team collaboration.

Meta plans to maintain normal operations on Workplace until the start of September 2025, followed by a read-only mode until May 2026, before decommissioning the service completely, reported TechCrunch.

Facebook once harbored aspirations to dominate enterprise communication, but Meta, its parent company, is now closing a significant chapter in that narrative.

The report further mentioned the decision comes after Workplace's ten-year stint, during which it aimed to introduce a new revenue stream for Facebook. However, it struggled to compete with platforms like Salesforce, Inc.'s (NYSE:CRM) Slack and Microsoft Corp's (NASDAQ:MSFT) Teams.

Zoom Video Communications Inc (NASDAQ:ZM) issued a statement today that Workvivo was named as Meta's only preferred migration partner for its customers as it retires Workplace from Meta.

Workvivo, acquired by Zoom in 2023, operates as another enterprise communication platform.

John Goulding, CEO and founder of Workvivo, said, "We know that the news today may be disruptive for Workplace from Meta customers, but we're so excited about the opportunity to support and help them. Meta has made a huge impact in this market, and we believe that Workvivo is the natural choice for Workplace from Meta customers to transition their employee experience platform."

The closure's impact on employees remains uncertain as Meta has not disclosed specific details.

Meta stock has gained more than 97% in the last 12 months. Investors can gain exposure to the stock via Vanguard Communication Services ETF (NYSE:VOX) and Communication Services Select Sector SPDR Fund (NYSE:XLC).

Price Action: META shares are trading higher by 0.63% at $470.96 at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.