The council made the decision to disband the service and lay off its four workers at a meeting last week. The service will close by September.
Ways runs seven youth clubs in the Watford area, and has been working with Hertfordshire County Council for eight years. The county council will take over two of the projects, and Watford will commission its remaining youth provision from commercial, voluntary and faith groups.
Caroline Tippen, assistant youth service manager at Hertfordshire County Council, said: "Eight years ago, Ways was right for the time, but it is not appropriate now."
Watford Youth Council has criticised the move. Clare Pitkin, 17, said: "The council did not consult young people over the closures and I've got reservations. We are hoping that if enough councillors object to the plan, it will be re-examined."
