Speaking to a packed audience at the Queenstown Writers Festival, Mr Newport said he was making staff redundant, and selling cars and computers.
He pointed the finger at the challenges faced by media industry and difficulties in attracting digital advertising for his decision to put his business "on hold".
"Today I have got some sad news that I will have to put Crux into hibernation until the situation gets better," he said.
Mr Newport vowed he would keep publishing behind a paywall on Substack, and he would not be dropping his pursuit of information from the auditor general about how the Queenstown Lakes District Council was spending ratepayers' money.
He cited the end of public interest journalism funding and reluctance of government to fund hyper-local journalism as one reason he could not continue his Queenstown-Lakes and Dunedin news services at this time.
"The nature of digital advertising is that we can’t make money out of it," he said.
He confirmed he would be keep his publishing systems so he could pick up again in the future.
Mr Newport’s announcement was made during a panel discussion on The Future of Media in New Zealand.
The guest speakers included Sunday Star Times news director Craig Hoyle, political journalist Paddy Gower, Queenstown-based Stuff senior writer Debbie Jamieson and Mr Newport.
Mr Newport launched Crux in Queenstown in 2018.
