Extra health and safety measures were being taken at the railway and despite acting as a form of public transport between High Town and Low Town, owners said the time was right to close the service due to an increase in confirmed Covid-19 cases throughout the West Midlands.
The railway had not long reopened following the rewinding of its electric motor.
Cliff railway chairman Dr. Malvern Tipping said: “Since re-opening nine days ago on the completion of the engineering works, the directors have been in regular contact with the cliff railway’s local management, who have been monitoring the coronavirus situation closely.
"It has now become clear to us that the need for a passenger service between Low Town and High Town is much out-weighed by the need to take measures to protect the health of our staff and that of the general public."
Letters have been sent out to members of staff at the railway designating them as furlough workers under the government’s Job Retention Scheme until further notice.
Mr Tipping added: “The exponential growth of the contagion creates a very uncertain time not just for the cliff railway, but also for all residents and businesses in the town.
"We appreciate that our staff will be very anxious. We have taken the necessary steps to protect their health and are doing what needs to be done to ensure that the cliff railway survives into 2021 and beyond. Those are our priorities.
"In the meantime, I hope that members of staff stay healthy, and I look forward to welcoming them and our passengers at some time in the future when we will have to all-clear to resume service.”