The social network had been building and testing a platform - called LOL - for humorous content, but now it's said the company is switching gears with a new focus.
It's said that rather than the meme app aimed at high school-aged children, Facebook will instead focus on a messaging app for under-13s called Messenger Kids.
As reported by Recode, the company as started to restructure a "youth team" - made up of more than 100 employees - working on features and products aimed at teens and kids.
A spokeswoman said: "The youth team has restructured in order to match top business priorities, including increasing our investment in Messenger Kids."
The messenger service gives children a way to talk to friends and family members - approved by their parents - in an ad-free environment.
Facebook - like many other tech companies - is striving to attract younger people to its service to compete with the likes of Snapchat.
As well as the Messenger Kids app, the site also continues to work with its Stories feature, which lets users share videos and photos before they disappear 24 hours later.