The station is transmitted via Freeview, BSkyB and online. It will cease broadcasting on 30 November.
Bauer Media partly blamed the decision on the "rising costs of broadcasting on Freeview and Sky".
Mojo Radio, a spin-off from the succesful music magazine, launched in 2003. It recorded 279,000 listeners in the third quarter of this year, according to the latest Rajar figures.
No redundancies are expected and Bauer Media will relinquish both its Freeview and Sky slots.
Mark Story, managing director, national brands at Bauer Radio, said: "We remain committed to digital radio where we can be satisfied that we have the right brands, on the right platforms, at the right time."
The closure will be seen as another setback for digital radio, despite positive Rajar figures for digital radio listening.
In the third quarter of 2008, digital listening accounted for 18.7% of all listening, up from 17.9% the previous year. However, only 4% was to digital-only stations.