New Leeds manager Peter Reid has told assistant boss Eddie Gray and head coach Brian Kidd that they are surplus to requirements at the club.
Kidd has had his contract paid up at Elland Road
Gray and Kidd are on 12-month notice periods at Elland Road but are believed to have already left, having had their contracts paid up.
Reid revealed: "I've been asked by the chairman to review all the football areas of the club with a view to further cost savings.
"This is one of the worst aspects of being a manager but, due to the financial situation at the club, tough decisions have to be made."
very disappointed - at the moment I don't know what I'm going to do
Reid's former Sunderland assistant Adrian Heath has been tipped to join the new manager at Elland Road.
But Reid has refused to speculate over any new appointments.
"There's been an awful lot of speculation about who is joining my backroom staff. I intend to take my time over what I see as a vital decision.
"In my spell at Leeds I've enjoyed working with Eddie and Brian. Nobody can doubt Eddie's status as a Leeds legend or Brian's proven track record as a top coach.
"I wish them both well in the future but I feel changes have to be made if the club is to progress in the way I want it to."
Reid's decision has received the backing chairman John McKenzie.
Professor McKenzie said: "Like any manager Peter needs to bring his own team to help him get the best results on the pitch.
"Unfortunately, due to our financial circumstances it's not possible to find an alternative role for Eddie or Brian."