Newcastle management believed the Jets had become stale under coach Ernie Merrick and a change in direction was the only hope of arresting the slide and breathing life into their A-League campaign.
Less than two years after taking the Jets on a fairytale ride to a home grand final, Merrick parted ways with the club on Monday. The veteran coach met with chief executive Lawrie McKinna after he returned from Melbourne, where the Jets were thumped 4-0 by Victory on Sunday to remain bottom of the ladder with two wins.
The heavy defeat, their fourth loss in five games, was the final straw.
Owner Martin Lee was consulted, but the final decision was made by McKinna, who had recruited Merrick.
The veteran Scotsman, who will be paid out the remaining five months of his contract, was shocked by the axing.
Jets' W-League coach Craig Deans and assistant Li Qiang will take charge in the interim. McKinna and youth team coach Daniel McBreen will also be on deck at training Tuesday as will new strength and conditioning coach Brice Johnson.
The club has received interest in the position and a permanent replacement is expected to be finalised in the next three weeks.
John Aloisi, Paul Okon and Harry Kewell are among the potential replacements, but management are also open to an overseas coach.
The players were notified of Merrick's departure on Monday afternoon.
McKinna will address the media before training on Tuesday but the Newcastle Herald understands that management had been growing increasingly unhappy with the situation.
And with a tough run of games ahead, starting with a visit my runaway league leaders Sydney FC on Friday, they decided to take action.
One source said: "Ernie had two-and-half great seasons here but sometimes things get stale and you need change.
"We may play one or two good games but in terms of making the semis, no way were we even close. By moving now, we have enough time to do something in the season."
Merrick, who declined to comment when contacted on Monday, did not seem to fear the axe in his post-match press conference on Sunday, joking about the fact that all coaches have an expiry date.
"I've never felt pressure, really, because I know I'm only a caretaker coach," Merrick said. "I know I'm going to go sooner or later. I won't change the way I coach .... I think with the quality and the culture we have at the club, we have the players to turn it around."
The trade war between China and US has impacted on Lee's LED business and was the catalyst to scale back his investment in the Jets.
Marquee midfielder Ronny Vargas was not replaced, however, the club has used the full $3.25 million salary cap and the football staff has not been greatly effected.
In August, Merrick, 66, labelled this season's roster, which included new buys Nick Fitzgerald, Abdiel Arroyo, Wes Hoolahan, Matt Millar and Bobby Burns "probably the strongest squad since I've been at the club".
Long-term injuries to Hoolahan, who is yet to play a league game, Arroyo and captain Nigel Boogaard has tested the Jets' depth as has the shock exit by Joe Champness to pursue a rap music career.
Funds have been made available to bring in a player during the January transfer window but Merrick opted to blood fringe players Angus Thurgate and Pat Langlois.
Merrick also opted against replacing assistant coach Clayton Zane when he departed on the eve of the season to take up the role as Northern NSW Football Technical Director.
Arroyo and Boogaard are due back in the next fortnight.
