During the second intermission of their game against the Red Wings on Tuesday night, the Oilers met with president of hockey operations and general manager Peter Chiarelli and told him he was sacked.
"I thought it was right that Peter would have the chance to leave the building in the way that he saw fit", CEO Bob Nicholson told reporters Wednesday at a press conference announcing the decision.
It is expected that assistant general manager Keith Gretzky, Wayne's younger brother, will assume some of the GM responsibilities.
But Oilers have faltered since then, missing the post-season past year and now sitting outside a playoff spot.
"Well, if there are guys that believe (we aren't talented enough), they should get out of the room", McDavid said. "We played a solid game and we really didn't give (Connor) McDavid and (Leon) Draisaitl a whole lot even if they found a way to get on the scoresheet".
"He felt he let the organization down by not getting the team into the playoffs".
Chiarelli exits after three plus-seasons with Edmonton.
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The Bruins fired him days before the Oilers hired him.
"There's something in the water here in Edmonton that we don't have right, and we gotta get that figured out", Nicholson said.
Edmonton is now on a three-game losing streak and is in seventh place in the Pacific Division with a 23-24-3 record heading into All-Star weekend and its bye week. The team ended its 10-year playoff drought during the 2016-2017 season when they advanced to the second round.
There is no immediate replacement in line for Chiarelli, so Kevin Lowe, Craig MacTavish and Scott Howson will fill in for Chiarelli, according to ESPN. We're going to try and bolster the offence and the defence, but we're not trading away our first pick. Boston won the Stanley Cup in 2011 with Chiarelli as GM.
Chiarelli was originally hired to rebuild the Oilers around superstar Connor McDavid in April of 2015, but has struggled to find the right pieces to play alongside the reigning Art Ross Trophy victor.
This continues the franchise's rebuild in management after firing Todd McLellan earlier this season.
He signed Milan Lucic to a $42 million, six-year contract that now appears to be unmovable.
Under Chiarelli's leadership, the Oilers were 137-133-25. On Monday, Chiarelli signed goalie Mikko Koskinen to a three-year extension worth $13.5 million that also included trade protection.