Thirty staff are to be axed and more than 100 teenagers lose their school places after a Midland academy trust revealed it will close two of its so-called "revolutionary" studio schools.
The Midlands Academies Trust is shutting its two flagship studio schools in Warwickshire and Leicestershire, blaming the decision on dwindling pupil numbers and a lack of cash.
Studio schools are a new government concept aimed at plugging the gap in Britain's skills industry.
The first one opened five years ago and they provide qualifications and opportunities for pupils aged 14 to 19 which it is hoped will lead to a job.
The establishment of studio schools has been criticised by some teaching unions which claim they will cause further fragmentation to provision by state schools.
And the planned closure of Midland Studio Colleges in Nuneaton and Hinckley could throw a shadow of doubt over the viability of the country's remaining 46 studio schools - including three in Birmingham.
In July, Waverley Studio College in Bordesley Green - set up two years ago - was plunged into special measures, with a damning Ofsted report rating it "inadequate" and revealing a staffing crisis.
Responding to the report at the time, the school's executive principal Kamal Hanif blamed the high turnover of staff on the Trojan Horse scandal - which has left schools across Birmingham struggling to attract teachers.
The third studio school in Birmingham is Aston University Engineering Academy which specialises in engineering and science and is sponsored by Aston University.
It is the only one of Birmingham's studio schools not to be struggling, having been rated 'good' by watchdog Ofsted when it was inspected last year.
Meanwhile, teaching union the Association of Teachers and Lecturers (ATL) said it was "saddened" by the news that Midland Academies Trust was closing two of its studio schools by July next year.
The closures will mean 155 students will lose their school places and up to 30 staff will lose their jobs.
"We are disappointed to learn about the proposed closure of the studio schools and sad for the staff, young people and parents affected," said an ATL spokesman.
"ATL will be working closely with members to ensure they receive all due entitlements and any support they may need.
"The model of education provided by the studio schools - a mix of academic and vocational courses with excellent business links - presented such a positive opportunity for their students who are now facing upheaval at such a crucial phase of their school lives.
"Students in Years 10 and 12, who have just settled into their courses, now face changing schools while Year 11 and 13 students will be completing their courses on a sinking ship.
"We are very concerned about the effects of transferring substantial numbers of Year 10 and Year 12 students to other schools.
"This will be a great challenge for their new schools as well as for the transferring students themselves.
"Sadly, this demonstrates that being a free school, an academy or part of an academy chain is not risk-free, even with an excellent Ofsted report."
The Midland Studio College in Hinckley only opened in September 2012 while its sister school in Nuneaton opened a year later.
But, although the schools will be closing, parents and carers are being assured that arrangements are being made for children to continue with their education.
Tim Render, chairman of the trust's board, said: "We are firmly committed to providing a high standard of education for every student and we believe we cannot achieve this any longer with the lower than forecast numbers of students at the studio schools.
"The success and well-being of our students is our main priority and that they are able to continue their studies with the least disruption possible."
Although they are closing, students will be given the opportunity to continue their studies at other schools within the trust, supported by North Warwickshire and Hinckley College.
Year 10 and Year 12 students will be given the opportunity to attend either The George Eliot School, in Nuneaton, or The William Bradford Academy, in Earl Shilton, from January.
Year 11 and Year 13 students will remain at the studio schools until the end of the academic year.
A Parents' Reference Group will be established to ensure students are making sufficient progress and adapting to their new arrangements during these changes, with all parents offered the opportunity to visit the new schools and colleges recommended by the trust, he added.
