Derbyshire County Council has confirmed that Connexions Derbyshire Limited will cease trading on 31 March, stating that work it currently carries out will be taken on by the council.
A spokeswoman for the council was unable to say which aspects of the service will be retained and which will end.
She said: "Government grant reductions mean it is no longer viable for us to continue to run the Connexions service in its current format.
"Like other local authorities we are looking at ways of delivering careers advice to young people more efficiently. Work currently done by Connexions will be carried out directly by the county council from April.
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