The helpline will now be run by essentiagroup, the company behind the Home Office's drug advice helpline for young people, Frank.
Ufi won the original deal to operate Connexions Direct in 2001, but the Department for Education and Skills decided to change provider following a competitive tender. Ufi declined to comment on the decision.
Essentiagroup, of Glasgow, will run the helpline from 1 July, but the service provided will not change. The call centre will still be based in Newcastle-upon-Tyne and the company plans to boost staff levels.
Catherine Kelly, head of human resources and training at essentiagroup, said: "We are looking to increase staff numbers significantly, but it is too early to go into any specifics."
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