The changes, effective immediately, come as a surprise for the rank and file and to company watchers.
In an e-mail, Times spokeswoman Eileen Murphy said Arthur Sulzberger, Jr., the publisher of The Times and chairman of The New York Times Company, "made the decision because he believed that new leadership would improve some aspects of the management of the newsroom."
Widely respected for her journalistic skills, Abramson made history as the paper's first female editor when she was promoted to the job in 2011. But she also has a reputation for a hard-charging, and at times prickly, personality.
The paper's leaders also have had to deal with a series of high-profile defections by reporters and editors, who left for competitors and media startups.
She is also credited with overseeing the organization at a time of deep changes, including the paper's aggressive shift toward digital journalism and decision to charge readers for content online.
"I've loved my run at The Times," Abramson said in a statement. "I got to work with the best journalists in the world doing so much stand-up journalism."
Abramson was not immediately reachable, and the company said she was "no longer here."
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Baquet, a Pulitzer Prize winning journalist who previously worked as editor of The Los Angeles Times, has been managing editor at the Times since September 2011.
"There is no journalist in our newsroom or elsewhere better qualified to take on the responsibilities of executive editor at this time than Dean Baquet," said Arthur Sulzberger, Jr., the publisher of The Times and chairman of The New York Times Company, ! in a statement. "He is an exceptional reporter and editor with impeccable news judgment who enjoys the confidence and support of his colleagues around the world and across the organization."
Sulzberger initially made the announcement to senior editors Wednesday afternoon, and addressed the full newsroom around 2:30 p.m., according to a report by The New York Times.
Ravi Somaiya, the Times' reporter who covers the media beat, tweeted that Sulzberger cited "an issue with management in the newsroom" as a reason for the change.
Alex Jones, a former Times reporter who teaches media and public policy at Harvard University, says Abramson doesn't have "any journalistic apologies to make."
"She was the head of the newsroom at a difficult time," he said. "I worked for several top editors (at the Times). Every single one of them is pushy and demanding. I don't think she is any more difficult than others. I think, overall, that just goes with the territory. It's a demanding, high-standards place."
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