Norwood was hired two years ago to revamp the troubled magazine by introducing a more cutting-edge look.
The title, a fashion magazine for young women first launched in 1935, will publish its last issue in November. All 93 jobs will be lost.
Steven T Florio, president of Conde Nast, said, "This was a difficult decision. Unfortunately, current economic conditions have produced a situation where the magazine is no longer viable."
Mademoiselle's 1.1m subscribers will receive issues of Glamour magazine, another Conde Nast fashion title, from January next year. The Publishers Information Bureau has said total advertising pages for major US magazines fell 11% in the year to August.
Mademoiselle's advertising pages were down 18 percent this year, to 500 pages for January to September, compared with 607 pages last year.
Mademoiselle is the latest in a number of casualties at Conde Nast in the US. It has already closed Women's Sports & Fitness and moved Details to another arm of Conde Nast, Fairchild Publications, where after a four-month suspension it was relaunched as a men's trade fashion magazine .
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