From next April, Leeds-based advice and guidance provider igen will instead be given responsibility for delivering services.
Northumberland County Council made the decision to award the contract to igen following a tendering process.
Connexions Northumberland has been closely involved in the development of integrated youth support services in the region.
Trevor Jones, the chair of Connexions Northumberland, said the loss of the contract was a “great shock and huge disappointment”.
He added: “The decision to award the contract to an organisation based outside the area will almost certainly lead to a highly-successful Northumberland company going into liquidation – with the inevitable loss of some local jobs.”
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