Walsall ends Serco school's contract
Private firm Serco has lost its education contract in Walsall, the council has said.
The firm is to be given two years notice on its contract which is likely to formally end in summer 2013.
The council said government policy changes prompted its decision, such as schools being able to buy in services from elsewhere.
Serco, under the name Education Walsall, took over control of schools in the area in 2003.
Ged Rowney, director of children's services for Serco, said it had been selected by several other authorities to provide education services in the future.
Councillor Rachel Andrew, cabinet member for children's services, said there was a "changing landscape which meant big changes in how education and learning was supported".
"Schools will soon be able to buy in services from other places and with more schools taking Academy status for greater autonomy things are changing," she said.
Head teachers are to work with the council to develop a new relationship with schools to improve results for all children, she added.
"This decision will no have an immediate impact on any service or member of staff," Ms. Andrew continued.
"That's an important reassurance as I want Serco staff to feel valued and to continue to provide important support to schools and early year's services without any disruption."