Hachette, which publishes in New Zealand under the Hodder Moa imprint, is ceasing publication of New Zealand books.
The company will continue as a marketing and sales office for the group's international titles and New Zealand backlist, according to a statement from Hachette Australia and New Zealand chairman Malcolm Edwards on Friday.
AAP reports finance, administration and IT functions will be relocated to Australia and publishing will cease in New Zealand after the completion of its 2013 programme.
The New Zealand publishing business has shrunk largely because of "the increased sourcing of books from overseas, at the expenses of the (domestic) trade, and the rapid growth of e-books," Mr Edwards said.
AAP reprots the book trade is one a big casualty of online shopping and e-readers and the trend away from hard copy. In early 2011, the Whitcoulls and Borders chains were placed in voluntary administration.
The Publishers Association says New Zealand still has a vibrant publishing industry.
Cice-president Melanie Laville-Moore said many companies have to make tough decisions because it is a difficult time for the industry.
But, she said, there are still good books coming out of New Zealand.