Daily Telegraph editor Tony Gallagher is understood to have been fired after four years in charge of the UK's biggest selling quality paper.
Telegraph Media Group announced to shocked staff on Tuesday morning that Gallagher was leaving the company, apparently with no job to go to.
Telegraph journalists took to Twitter to express their shock at Gallagher's abrupt departure, revealing that he had been "banged out of the newsroom" at short notice, with some staff reported to be in tears.
Daily Telegraph assistant editor (news), Chris Evans, will take over as acting print editor of the Monday to Friday paper with immediate effect. Ian MacGregor, editor of the Sunday Telegraph, will move to become acting weekend print editor of the Saturday and Sunday editions.
Gallagher's abrupt departure comes as Jason Seiken, the former PBS executive hired to be TMG's chief content officer and editor-in-chief in September, seeks to restructure the organisation to move the focus away from print and put greater emphasis on digital content.
TMG had been planning to introduce a new "five pillars" structure, organised around five new divisions – Live, Lifestyle, Digital, Print and Impact. Gallagher was tipped to head the print division.
However, in November it emerged that the five pillars strategy had been put on hold. MediaGuardian reported at the time that Seiken was understood to not favour this plan.
TMG said Gallagher's departure came as "the business moves to the next phase of its digital transformation". It is described as part of a restructuring of Telegraph titles aimed at building its digital media audience and revenue.
Murdoch MacLennan, chief executive of Telegraph Media Group, said: "Tony has done an excellent job for the newspaper and helped us to maintain our position as Britain's leading quality daily.
"In particular, he played a pivotal role in the investigation into MPs' expenses. I would like to thank him and wish him every success in the future."
Acknowledging the growing challenge print publications face in the age of digital media, he added: "The Telegraph remains profitable, but we face increasing pressure on circulation and advertising revenue streams. To protect the company's future we need rapidly to embrace and adapt to the new digital world in which our customers live."
Gallagher joined the Telegraph in 2006 as executive head of news from the Daily Mail. He was promoted to deputy editor the following year and replaced Will Lewis in the editor's chair in November 2009.
Several staff chose to express their feelings and the mood among colleagues on Twitter.
Ben Bryant, a Telegraph investigative journalist, wrote: "Daily Telegraph editor Tony Gallagher has left. Newsroom in shock. Some in tears".
Technology writer, Sophie Curtis, described the event as the editor being "banged out of the newsroom", before adding: "Everyone in shock."
The Telegraph's enterprise editor echoed her colleagues' sentiment: "Tony Gallagher was just drummed out of the office. Newsroom in shock. Farewell, @gallaghereditor."
Digital journalist, Laura Silverman, who works as an iPad editor at the Telegraph, tweeted a more balanced reaction: "Changes at last, but this is a shock MT @mediaguardian: editor Tony Gallagher departs @Telegraph"
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