The team announced that Bickerstaff was relieved of his duties, while Wallace and vice president of basketball operations John Hollinger were demoted to scouting and senior advisory roles, respectively.
The Grizzlies promoted Jason Wexler to president of the franchise with oversight of business and basketball operations. Zachary Kleiman was elevated to executive vice president of basketball operations and will oversee the day-to-day operations for the franchise.
"In order to put our team on the path to sustainable success, it was necessary to change our approach to basketball operations," chairman and controlling owner Robert J. Pera said in a statement. "I look forward to a reenergized front office and fresh approach to Memphis Grizzlies basketball under new leadership, while retaining the identity and values that have distinguished our team.
"I want to thank Chris and John for their long-term service and dedication to the Memphis Grizzlies and for their considerable contributions to our past successes, and look forward to their contributions to our future ones. I also want to thank J.B. for his leadership and commitment to our organization in his time as our coach."
Bickerstaff completed his first full season as the Grizzlies' head coach this year after taking over as interim coach in 2017-18. The 40-year-old coach was 48-97 in almost two seasons with the team.
Wallace replaced Jerry West as Memphis' general manager in 2007 and transformed the franchise with the acquisitions of Marc Gasol and Mike Conley. The Grizzlies reached the postseason in seven consecutive seasons before failing to reach the playoffs in the last two campaigns.