Central Stories director Brian Patrick has been made redundant as part of the restructuring of the museum's leadership.
Mr Patrick was appointed to the role in 2006, about six months after the museum and art gallery complex opened in Alexandra. Last week he was given three months' notice that his position would no longer exist following restructuring.
The Alexandra Museum Board runs the facility and board president Gill Grant said Mr Patrick had done "a brilliant job and I'll be sorry to see him go".
"He set the whole place alight.
He's an entrepreneur and innovator and we've been more than happy with him.
"However, as part of a board review over the past six months, we've decided we need to restructure and with a change in our direction in the future we need a modified set of leadership skills."
The board needed to look at the leadership roles at the museum to ensure it was going in the right direction, Mrs Grant said.
Asked if the restructuring was a cost-cutting measure, she said the board always tried to keep costs to a minimum, but money was one of the factors that had prompted the exercise.
Mr Patrick was employed on a contract basis and his contract had not been renewed. The job of director no longer existed.
The job description for a replacement was still being worked out but it would be a less "high-powered" position and would probably be similar to a curator's role.
The board was involved in the general management of the museum and board members were taking on a considerable portfolio of responsibilities, she said.
Mrs Grant said Mr Patrick had made a huge contribution to the success of the museum and had established many popular features and activities.
Mr Patrick declined to comment on the restructuring. The board employs one other full-time staff member and two part-timers at the museum.
