Wellington Rugby Football Union and Hurricanes chief executive James Te Puni will walk away from both roles at the end of the Super Rugby season.
Confirmation of Te Puni's departure comes as the WRFU braces for a $750,000 financial loss for 2014 that has already caused five job losses at the organisation's Newtown headquarters.
The WRU has today confirmed the creation of two separate chief executives, one to lead the Hurricanes, and the other to steer club and community rugby.
The changes, revealed by Stuff.co.nz on Tuesday, are the result of a three month internal review of all aspects of the union's operations.
The restructure will cause nine full time jobs and one part time position to be disestablished. Five new roles will be created in a down-sized organisation.
By giving the Wellington Rugby Football Union and the Hurricanes separate chief executives it is hoped the two bodies can focus more on their core roles without compromising each others' best interests.
"This restructuring will allow the Hurricanes franchise considerable commercial independence while allowing the WRFU business to give added focus to community, club and provincial rugby," WRU chairman Iain Potter said.
Changes at board level should also aid in that cause with influential long time WRU director and Hurricanes part-owner Paul Collins moving off the union's board table.
Te Puni will continue in the two chief executive roles through to the end of the current Super Rugby season as part of the transition.
"I'm looking forward to seeing the Hurricanes succeed, but after four years and with the role being split in the new model, it's time for me to do something new. In particular, my young children are excited at Dad not being at rugby 40 weekends per year," he said.
Te Puni has endured a tough ride after he discovered a crippling contractual arrangement tying the union into a multi-million dollar guarantee for managing the annual Wellington Sevens tournament.
That deal turned bad last year when the event failed to sell out and became crippling when fans walked away in droves this year.
While Te Puni turned around four years of financial losses at the union when he took office, the issues with the sevens have been insurmountable and are likely to see another big loss in 2015.
Potter said the board had to make some tough decisions from the financial results of the review and these were not related to staff performance or results of the 2014 ITM Cup campaign.
"These decisions are, however, necessary in creating a sustainable business model that will develop the best outcome for our organisation's future, and the game of rugby in Wellington.
"We certainly value the commitment and integrity each individual within this organisation has shown and it is extremely disappointing that we have to say goodbye to a number of those hardworking people."
Potter said Te Puni had guided Wellington rugby well.
"However, we have now found ourselves in a challenging financial position as a result of past contractual arrangements and softening demand around Sevens Wellington," Potter said.
"With this new model we expect 2015 to continue to be a tough year for the union financially, but the plan sees us return to profit in 2016 and beyond.
"This has been a very challenging process for the board, our staff, and their families. Although it is unfortunate we have had to make these changes, we feel it has been necessary to ensure a successful and sustainable future for Wellington Rugby."
