Building 8 is dedicated to creating "category-defining consumer hardware products that are social first" and drives "innovation in the areas of augmented and virtual reality, artificial intelligence, connectivity, and more," according to Facebook.
Shares of Facebook were higher in afternoon trading on Tuesday.
Dugan's retirement from Building 8 comes just 18 months after she arrived in February 2016.
"I will be leaving Facebook to focus on building and leading a new endeavor. I will be working with leadership over the next several months to ensure Building 8 makes a smooth transition into 2018," Dugan wrote in a post. "This was a difficult decision for me. Together, we have already done so much good work. And there are many people that I will miss, personally, and professionally."
Prior to joining Facebook Dugan worked at Alphabet's (GOOGL) - Get Report Google as a senior executive and before that post, she was a director at DARPA, the Defense Advanced Research Projects Agency.
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