Some of TVC's client work will be transferred elsewhere within the group; details of this process are currently being worked out.
Lauren Hackett, The Economist Group SVP of global communications, confirmed to PRWeek that the move is part of an overall staff reduction programme at the media company.
Ninety group employees, roughly seven per cent of its total, have been cut, AdWeek has reported.
Hackett told PRWeek: "I can confirm that we are closing TVC as a standalone business and brand and integrating core competencies into The Economist Group's broader client offerings. Clients are being notified and open projects will be completed or transitioned per our commitments.
"This change to TVC was part of broader changes at The Economist Group as an effect of the COVID-19 pandemic."
It has not been revealed how many TVC employees will be leaving the group and how many have moved to different roles within the company.
The cutbacks will also see The Economist's bi-monthly print magazine 1843 become digital-only from August.
TVC was founded in London in 1998 and specialised in PR through content creation. It was acquired by The Economist Group in 2012 and at its peak had a workforce of more than 80 people. Over the years it had operated offices in New York, Hong Kong and Paris.
Among TVC's most notable work was as global broadcast lead for the 2012 Red Bull Stratos event, which saw skydiver Felix Baumgartner perform the world's first supersonic skydive.
Its extensive client list has also included Bacardi, Tesco, EY, Airbnb and Jaguar. In addition, TVC owned The Digital News Agency, a platform for brands to host and distribute content.