Mary Davies was responsible for the careers and education business partnership, which runs the careers service on behalf of the city council.
Board chairman Neil Makin yesterday confirmed that the board had unanimously agreed to replace Mrs Davies as chief executive. He said: 'The decision of the board is based on a whole range of reasons.'
The crisis was initially triggered by an independent review into staffing and workload at the careers service. The study, carried out by SWA Consulting in 1998, accused the organisation of adopting a confrontational, aggressive and even dictatorial management style.