Politico first reported rumors of Abramson's ouster Wednesday afternoon before the Times itself made a formal announcement.
Times' publisher Arthur Sulzberger Jr. explained the sudden dismissal, saying, "I choose to appoint a new leader for our newsroom because I believe that new leadership will improve some aspects of the management of the newsroom."
"This is not about any disagreement between the newsroom and the business side," Sulzberger clarified. "We had an issue with management in the newsroom. And that's what's at the heart of this issue."
Abramson issued a statement speaking fondly of her time with the paper, saying "I've loved my run at the Times. I got to work with the best journalists in the world doing so much stand-up journalism."
Abramson will be replaced by managing editor Dean Baquet, whom she's clashed with in the past.
Elsewhere in his statement, Sulzberger praised Baquet, describing him as the most qualified journalist at the Times or elsewhere to run the most prestigious newspaper in the country.
"He is an exceptional reporter and editor with impeccable news judgment who enjoys the confidence and support of his colleagues around the world and across the organization."
Notable deaths of 2014 [PHOTOS]