The decision came after the hospital in November announced a proposal to close the unit, citing staff shortages in nursing and midwifery.
"At the end of our consultation period ... we have come to the decision that we will close the maternity unit," Epworth executive general manager Leonie Lloyd told hospital staff, executives and corporate representatives on Thursday.
"I'm extremely saddened by having to share this news with you ... I'm devastated," she said.
The unit will close at the end of March, a month later than anticipated.
"Our intent is to deliver those women that are due before the end of March," Ms Lloyd said.
"Any women that are booked after that will be asked to find care elsewhere."
Greater Geelong, Victoria's second-largest city, has a population of 274,647 and is forecast to grow to 393,216 by 2041.
"We have lots of patients wanting to come our way but we just do not have a safe staffing level to be able to support that group of women and their families into the future," Ms Lloyd said.
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