Liverpool have announced director of football Damien Comolli has left the club by mutual consent.
The news comes just two days before Saturday's FA Cup semi-final against Everton with Comolli appearing to pay the price for the club's under-performing summer additions.
The Frenchman joined Liverpool as director of football strategy in November 2010 after being brought in by the club's American owners to oversee the recruitment of players into Anfield.
Comolli played a key role in the signings of Luis Suarez and Andy Carroll, for a British transfer record fee of £35m, last January followng the sale of Fernando Torres to Chelsea.
Comolli was then appointed director of football in March 2011 and he oversaw the club's spending spree last summer which saw the likes Jordan Henderson, Charlie Adam, Stewart Downing, Jose Enrique and Sebastian Coates all arrive at Anfield in big-money deals.
However, several of the Reds' signings have failed to justify their price-tag with Carroll, Henderson, Downing and Adam all struggling for form since their arrivals on Merseyside.
Liverpool's poor Premier League performance has seen their buying policy questioned and it seems the American owners have now decided to act by dispensing with the services of Comolli.
Liverpool principal owner John Henry thanked Comolli for his contribution in a statement on the club's official website.
"We are grateful for all of Damien's efforts on behalf of Liverpool and wish him all the best for the future," said Henry.
Chairman Tom Werner added: "The club needs to move forward and we now have a huge game on Saturday. It is important that everyone joins us in supporting the manager and gets behind Kenny and the team and focuses on a strong finish to the season."
Comolli revealed he decided to leave the club to return to his native France for 'family reasons'.
He said: "I am grateful to have been given the opportunity to work at Liverpool and am happy to move on from the club and back to France for family reasons. I wish the club all the best for the future."