ABC managing director Michelle Guthrie has been axed from the public broadcaster.

ABC managing director Michelle Guthrie has been axed from the public broadcaster.Credit:Alex Ellinghausen

Mr Milne told staff he was meeting the ABC's leadership team to explain the news,noting that some of them were currently overseas.

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In a statement,Ms Guthrie said she was considering her legal options.

"I am devastated by the board's decision to terminate my employment despite no claim of wrongdoing on my part,"she said.

Communications Minister Mitch Fifield thanked Ms Guthrie for her service"in what is a challenging and rapidly changing media environment". He said the government respected the independence of the ABC's board,which appoints the managing director.

Ms Guthrie started at the ABC in May 2016 as thefirst female managing director in the corporation’s 86-year history,with a salary of $900,000 a year,replacing Mark Scott.

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She moved back to Australia from Singapore for the role,where she had been managing director of agency relationships for Google's Asia-Pacific region.

In March 2017,Ms Guthrie began a"cultural and structural transformation"at the broadcaster. But she has also faced internal division over the organisation's direction,as well as budgeting pressure following cuts and another looming funding freeze.

Fairfax Media understands one of the central disagreements between Ms Guthrie and the board was over Project Jetstream,a costly long-term plan to transform the ABC into a digital,post-television media service.

Mr Milne has strongly backed the project,warningthe ABC will "wither away and cease to exist" without substantial government investment in its digital-only future. But it is understood Ms Guthrie was sceptical about the ABC's ability to extract extra funding in the current climate.

In an interview with ABC television on Monday,Mr Milne refused to discuss in detail why Ms Guthrie was sacked,but said the broadcaster needed a different"leadership style". He also said the ABC's relationship with the federal government under Ms Guthrie"could have been better",and it was important for the managing director to spend a lot of time in Canberra.

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