The switch was announced by Tina Brown, the editor-in-chief of Newsweek's sister title the Daily Beast.
The last issue of the print edition will appear on 31 December. The print edition will be replaced by a digital-only publication called Newsweek Global.
Brown, a former editor of Vanity Fair and the New Yorker, said that Newsweek Global will be "a single worldwide edition targeted for a highly mobile, opinion-leading audience who want to learn about world events in a sophisticated context. Global will be supported by paid subscription and will be available through e-readers for both tablet and the web, with select content available on The Daily Beast."
Newsweek's strategy is to tap into the growing number of people reading content online. A spokesperson for the title said there would be staff cuts, but would not give specific numbers. The switch means there will be no Newsweek print publication in the Europe and the US.
Brown said: "Regrettably we anticipate staff reductions and the streamlining of our editorial and business operations both here in the US and internationally.
Newsweek Global will be funded by paid subscriptions, with content available on the internet, e-readers and the web. Some of the content will be available on the Daily Beast.
According to Audit Bureau of Circulations (ABCs) figures, the latest circualtion figures for Newsweek was 185,011 in the period between January and December 2011.