Sharon Shoesmith, director of children's services in the borough of Haringey, was removed after the inquiry found her department failed to protect vulnerable children in north London, said Children's Secretary Ed Balls.
"Overall the inspectors' findings are, I have to say devastating," Balls said at a news conference. "In the case of Baby P things did go tragically wrong."
Seventeen-month-old Baby P, as he was publicly known, died last August after months of abuse in his home, The Daily Mail reported Monday, noting an estimated 60 visits by social workers failed to spot the ongoing abuse.
The boy's mother, her boyfriend and a lodger in their home are to be sentenced early next year in the boy's death.