Marketing and communications group manager Mike Waddell said the King Edward St centre would shut on December 14.
However, the polytechnic sought a "partner organisation" so it could keep providing computing education in South Dunedin, in a different form.
Because of the closure, one staff member lost their job, while the other staff member would be employed under the new service.
The person would work at the George St Community Learning Centre while the polytechnic organised the new regime.
"Unfortunately, the current funding rules mean that we are effectively not funded for these students.
"We need to think differently if we want to continue providing this service, and hope the wider community can help us find a solution."
