The decision was taken in the wake a unsatisfying end to the recent transfer window as club owner Ron Gordon oversees a full overview of the club’s football department.
It is understood that the 38-year-old was informed of the decision earlier this week.
Mathie arrived at Hibs in 2014, initially as the club’s head of recruitment. In the role, he was credited with attracting players like current Scotland internationalist John McGinn to the club.
Then, when head of football operations George Craig left at the end of 2019, former chief executive Leeann Dempster promoted him to the newly-created position of sporting director.
With a resume that includes spells at the Scottish Football Association and Celtic, the former Coventry, Bournemouth and Motherwell player has been involved in the arrival of every squad signing and managerial appointment since then, and was also party to the contract extension of key players such as Martin Boyle.
However, with Gordon almost completely revamping the club’s senior management, Mathie was one of the last remnants of the old guard and the writing appeared on the wall when the transfer window closed before he could push through the signing of Republic of Ireland international Jamie McGrath from St Mirren, in a swap deal that would have included midfielders Scott Allan and Drey Wright, as well as cash. That left the club with egg on their face and shy of the extra attacking option desired by frustrated manager Jack Ross, who had already been burnt by the delay in bringing in defensive cover.
Hibs eventually secured the loan signing of Middlesbrough defender Nathan Wood before the transfer deadline after making bids for St Johnstone’s Jamie McCart, but the inability to bring in reinforcements earlier in the window played a part in the Easter Road club missing out on the Europa League Conference League group stages after a heavy defeat by Rijeka without injured centre-half and captain Paul Hanlon.
Even after the transfer window closed, Hibs had to deal with the revelation that their interest in free agent Barrie McKay had come too late, allowing their Edinburgh rivals Hearts to beat them to his signature.
Mathie leaves Hibs having been involved in the club’s Championship title-winning campaign, the 2016 Scottish Cup triumph and finishing third in the Premiership last season.