The Hawks also have removed Wes Wilcox as general manager as part of the reorganization of their front office announced on Friday.
The team announced that Wilcox resigned and will become a special adviser to ownership, which will begin a search for a new general manager.
The Hawks also said Budenholzer will remain involved in personnel decisions.
Two names expected to emerge as candidates to lead the front office are former Detroit Pistons general manager Joe Dumars and current Cleveland Cavaliers GM David Griffin, league sources tell ESPN’s Marc Stein.
Both Dumars and Griffin worked closely with Hawks minority owner Grant Hill during Hill’s playing days. While in Detroit, Dumars played alongside Hill and eventually took over the Pistons’ front office after Hill departed to the Orlando Magic via sign-and-trade in the summer of 2000.
Griffin, meanwhile, was an executive in Phoenix when the Suns acquired Hill, who is poised to have a strong voice in the Hawks’ search.
The changes in the Hawks front office come after they dipped to 43-39 this season and lost to the Washington Wizards in the opening round of the playoffs.
Budenholzer was promoted to president of basketball operations after a 60-win season in 2014-15, when the Hawks earned the top seed in the East and reached the conference final before getting swept by Cleveland.
Information from ESPN’s Marc Stein and The Associated Press was used in this report.
By Yaw Adjei-Mintah
@YawMintYM on Twitter