Rob Edwards left Luton by mutual consent after four successive defeats left them in danger of relegation from the Championship.
Edwards leaves the Hatters after just over two years at Kenilworth Road, during which he guided them into the Premier League for the first time via the play-offs in the 2022-23 season.
The Bedfordshire club finished 18th in the Premier League last season and have struggled since returning to the Championship, with a 2-0 defeat to Queens Park Rangers on Monday leaving them just two points above the bottom three.
A statement from the Hatters said: “It is clear that the current Championship season has not progressed as expected and after holding cordial talks following the defeat to QPR on Monday, the board and Rob have agreed to part ways with immediate effect.
Edwards will remain a popular figure at Luton despite his departure, having led the Hatters to the top flight for the first time in 30 years.
The statement added: “We could not have wished for a man who understood better what it takes to be Luton Town manager, someone who has served as an ambassador for the club and the community in the glare of the global media spotlight.”
Luton have won just seven of their 26 Championship games this season, including nine straight defeats on the road.
We can confirm that Rob Edwards has left his position as Director by mutual agreement.
– Luton Town FC (@LutonTown) January 9, 2025
Chief executive Gary Sweet said: “As with all severance decisions, this was a difficult decision to reach, along with Rob, who has conducted himself with great professionalism and dignity throughout his two years at the club, and again this week as We really came to a mutual conclusion.
“Rob gave us some of our greatest days to celebrate as Hatters. These two amazing derby victories at Kenilworth Road, the final at Wembley and our Premier League season will live with us forever, and in doing so Rob has gained legendary status.
“Clearly the results this season, particularly away from home, have not been acceptable and while we have supported Rob and his team in every way we can, we all felt it was necessary to take action to rectify this with 20 league games remaining.
“It is typical of Rob's humility that he recognized this himself and leaves not just as a former manager, but as a trusted friend who has left his mark on every player and member of staff.
“Rob and his family will always welcome visitors to Kenilworth Road. The door is always open. On behalf of the Board, I would like to extend our sincere thanks to him for two years of hard work and many memories, wishing him every success in his future career.”