CSW Group, owned by four local authorities including Cornwall Council, is considered "no longer viable" following a review.
The company's owners, which also include Devon County Council, Plymouth City Council, and Torbay Council, have concluded that its funding and operational position has changed.
They have agreed that a new strategy is essential, with an emphasis on minimal disruption for the youth who utilise the educational and employment services provided by CSW Group.
The authorities are intent on conserving the considerable skills of the company, which entails reabsorbing CSW employees 'in-house' for Devon, Plymouth and Torbay councils.
Cornwall Council plans to employ the same strategy and/or appoint a specialist provider.
Detailed preparations are in progress to organise the definitive transition of CSW Group's functions by April 1, 2025.
Targeting June 2025 for the closure of CSW Group.
Despite it being a challenging time for staff, owners and customers, the local authorities deem it the correct moment for the change if the company's expertise and quality of service is to be preserved.
Plans are underway to support staff members and customers who are not included in the transfer, aiding them in exploring new opportunities within the peninsula where appropriate.
The commitment remains to provide young people with superior support concerning career options and transitioning between education and employment.
A spokesperson said: "We would like to thank the staff of CSW Group for their commitment and dedication to supporting young people for more than three decades and look forward to working with them to make this transition as smooth as possible."
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