The shutdown includes the company's website and the last 6pm news bulletin will air on July 5.
Owner Warner Bros Discovery said talks were ongoing with third parties to provide a pared-back news service - such as a 6pm bulletin for the Three channel. However, no deals have been reached yet.
Head of networks Glen Kyne said Warner Bros Discovery had been clear it would listen to all feedback both internal and external over the five-week consultation period.
He promised to let staff know immediately if any new deals could be finalised and thanked staff for their feedback.
The announcement comes after an all-staff meeting at a hall close to Newshub's office in Auckland's Eden Terrace on Wednesday morning.
Newshub staff were told by Warner Bros Discovery management in February this year it planned to axe the entire news operation with the possible loss of up to 300 jobs from June 30.
The newsroom was losing too much money, staff were told.
Since then, it is understood there have been talks between Warner Bros Discovery and a number of media firms, including Stuff, about ways that part of the business could be preserved.
It has been suggested that could include the production of a "slimmed-down" news bulletin by a third party.
Newshub senior journalist Michael Morrah said: "Obviously devastating for myself and all of my colleagues who put a lot of effort into trying to retain part of Newshub.
"But more so, I think terrible news for New Zealand as a whole and democracy as a whole."
Meanwhile, Television New Zealand staff will today hear the fate of its Sunday current affairs show, after the company confirmed yesterday it was axing the on-air version of consumer right programme Fair Go, and the Midday and Tonight news bulletins.
Spinoff founder Duncan Greive said the changes would be irreversible, meaning a "tragic" outcome for those affected.
