It will continue to "maintain commitments" to OZO owners, but it's not clear exactly what that means. The company halted development of future models of the camera in favor of further investment into digital health technology.
The news comes on the eve of the Oculus Connect VR developers conference, which opens Wednesday in San Jose.
Nokia got out of the mobile hardware business a couple of years back and now it's also leaving the virtual reality camera business. Altogether the company plans to shrink its workforce by some 310, with redundancies in the United States and UK as well.
The OZO ball boasts eight cameras and microphones that capture footage and for VR experiences.
After Nokia stopped making smartphones, it veered into VR, releasing a professional 360° camera called the OZO+ with an original price of $60,000 before getting cut to $45,000. "To start the process, Nokia invited employee representatives of Nokia Technologies in Finland to cooperation negotiations", said Gregory Lee, president of Nokia Technologies.
It's turn away from VR comes amid the predicted growth in the industry.
Nokia will also stop development of Ozo, a 360-degree VR camera.
Nokia is cutting 310 jobs as part of a restructure at its Technologies arm and is hiring two senior execs as it looks to make good on a promise to focus on the enterprise market.
Instead of chasing VR, Nokia Technologies will double down on digital health, focusing investments on Withings, the French smartwatch and medical-device maker in 2016.