Tony Gallagher is no longer editor of the Daily Telegraph, sources with knowledge of the situation told BuzzFeed.
It is understood that Chris Evans, currently the Telegraph's assistant editor, will take over.
A source said that Ian MacGregor, currently Sunday Telegraph editor, is set to take over as acting weekend editor.
There was a meeting for senior staff at approximately 12.15pm this afternoon to tell them the news.
A source said that individual desks were then brought in to hear the news: "He was banged out and it was all over in fifteen minutes."
(Banging out is a British newspaper tradition, in which staff make noise to mark the departure of a respect journalist.)
A Daily Telegraph journalist told BuzzFeed: "Tony Gallagher was respected and feared. Chris Evans has one of those qualities."
"Tony Gallagher called all of his section editors into the office to say goodbye at the 12.15pm meeting. He was very emotional," they added.
Telegraph staff reacted to the news.
Daily Telegraph editor Tony Gallagher has left. Newsroom in shock. Some in tears
The Editor has just left! Shocked. Found out about it as he was being 'banged out' of the building #Telegraph
@scurtsy @hendopolis A great editor. He masterminded the Telegraph's expenses investigation. Hard working and inspirational.
Telegraph Media Group (TMG) announced today (Tuesday) that Tony Gallagher, the Editor of The Daily Telegraph, is leaving the company as the business moves to the next phase of its digital transformation. Murdoch MacLennan, the Chief Executive of TMG, 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." TMG has decided to restructure The Telegraph titles in order to build a wider audience and revenue in the digital media world. Chris Evans, Assistant Editor (news), has been appointed Acting Print Editor of the Monday to Friday editions of The Daily Telegraph.Ian MacGregor, The Editor of The Sunday Telegraph, becomes the Acting Weekend Print Editor of the Saturday and Sunday editions. Both will report directly to Jason Seiken, Chief Content Officer and Editor-In-Chief. Murdoch MacLennan said: "While continuing to produce brilliant newspapers in print and maintaining The Telegraph's character and quality, the restructuring is designed to build on the Telegraph brand in order to attract customers with the very best, digital products possible."Unlike our rivals, 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." Jason Seiken said: "We must reinvent the way we work and move beyond simply putting news and information online and be an essential part of the audience's lives. Our competition is no longer only newspapers and we must innovate to survive. "Since I joined TMG I have been talking to the staff at all levels. There is great enthusiasm waiting to be unlocked and the restructuring will open up enormous opportunities for our staff."