The official statement reads, "Additionally, we will not feature Logan in season four of "Foursome" and his new Originals are on hold".
But he still made up to US$90,000 (HK$704,000) from his monetised "Tokyo Adventures" YouTube series even during the controversy, The Telegraph reported.
YouTube also said it will strike out Paul from its "Preferred Programme" that enables companies to post ads next to the site's most popular content creators.
The video platform is also putting a pin in Logan Paul's YouTube Red project.
The first video prompted another apology from Paul, where he commented on his severe lapse of judgment and doesn't expect forgiveness.
This doesn't mean that Paul's YouTube channel is deleted from the streaming site, but these are huge repercussions he's rightfully facing.More news: Camila Cabello's Producer Says Her Label Didn't Think 'Havana' Was A Hit
Here's a YouTube PR statement: "We built Google Preferred to help our customers easily reach YouTube's most passionate audiences and we've seen strong traction in the a year ago with a record number of brands".
The video, which has since been taken down, brought an avalanche of criticism to Paul and to YouTube for leaving the video up until it reached more than 6 million views, the Post noted.
Paul apologised in a YouTube video titled "So Sorry" last week for posting the video that showed him and his friends laughing about the body they filmed hanging on a tree in Japan's "suicide forest". So far, there have been no reports of advertisers pulling ads from YouTube in response to the Logan Paul situation.
Paul later posted an apology on Twitter, saying he had been "misguided by shock and awe".
But as one of YouTube's biggest "stars" and noting that YouTube had actively promoted the video while it was still online, albeit through algorithms, many were angry that the web giant did not say anything about the issue until 10 days later.
YouTube assured its audience that in addition to dishing out consequences for Logan, it will also be taking steps to prevent something like this from happening again. It further goes on to add, "Suicide is not a joke, nor should it ever be a driving force for views".