Havering Council has said it will cut its funding for youth services from the current £786,000 a year to £250,000, with external organisations taking over the running of services.
It has confirmed that jobs will go but has declined to say how many.
The council said outsourcing provision to external organisations will allow them to access external funding that is not available to the council.
It added that services will be more targeted, focusing on vulnerable groups and individuals that require support, while the authority's myplace youth centre, which opened in 2012 at a cost of £4.6m, will retain its focus on the provision of services for young people in the local community.
A further £100,000 a year in funding will also be made available to the youth service through the council’s housing department in a bid to support work with young people on housing estates.
Melvin Wallace, lead member for culture and community engagement, said: “We understand the importance of having a high-quality youth service for young people in the borough.
“All councils are facing cuts and the advantage of having a separate organisation to run the service is that it would be able to bring in extra funding, over and above the council’s budget, to provide youth services in the future.
“We are always sorry to lose staff, but this is unfortunately necessary in order to achieve the savings and continue the service.”
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