Event Cinemas is standing down the majority of its employees.
The decision follows the national cabinet announcement that cinemas were among non-essential services to be shut down from today (Monday).
Event Cinemas has venues at Miranda, Hurstville and Beverly Hills.
"As a result of the closure and in order to preserve as many jobs as possible for the future, Event Cinemas will temporarily stand down the majority of cinema employees from Friday 27 March until the end of May 2020, and will assess the situation again at that point in time," a statement said.
"During the stand down period, employees are able to draw down on annual and long service leave, and negative annual leave balances will be offered.
"Unfortunately, periods of leave without pay for some employees are inevitable."
The company said all customers who purchased tickets for movies after the closure will be automatically refunded and receive email communication.
The show goes on at Event Cinemas at Miranda, Hurstville and Beverly Hills despite further restrictions forced by the coronavirus outbreak.
Following the announcement on Wednesday that indoor gatherings had to be restricted to 100, Event Cinemas reconfigured seating maps to give movie-goers more space.
Further action was needed after Prime Minister Scott Morrison's announcement on Friday of a four square metres per person limit in an enclosed space.
"So, that's two metres by two metres," Mr Morrison said.
"So for example, if you've got a room, if you've got a premises, if you've got a meeting room or something like that, that is 100 square metres, then you can have 25 people in that room."
An Event Cinemas spokesman said late on Friday, "Following today's announcement, we are currently reviewing and assessing the new requirements across all of our auditoriums.
"If any of our cinemas do not meet these requirements, we will be reducing the cap of people admitted into the auditorium.
"Movie goers are being encouraged to use their own device to book digital tickets and choose their own seats via the Event Cinemas App or on website.
"Contactless payment is also encouraged in-cinema."
The spokesman said cleaning and sanitising processes had been increased, with a higher frequency of surface cleaning and sterilisation in public areas.
"We continue to maintain a high standard of cleanliness across our locations, with all cinemas regularly cleaned and maintained during operating hours, and professional cleaning teams conducting detailed cleans every single night, in every single Event Cinema," he said.
Palace Cinemas closed its four city and inner-city venues after the limit of 100 people was announced.