Wallace and vice president of basketball operations John Hollinger were demoted to scouting and senior advisory roles, respectively.
The Grizzlies are elevating Jason Wexler to president, overseeing basketball and business operations.
Assistant GM/team counsel Zach Kleiman is being elevated to executive VP of basketball operations, league sources said. Kleiman will run the day-to-day operations for the Grizzlies. He had taken on an increasing role in basketball operations in recent years and now will hold a prominent position in the organization.
The franchise is planning to add experienced front-office executives to the organization.
“In order to put our team on the path to sustainable success, it was necessary to change our approach to basketball operations,” team chairman Robert Pera said in a statement. “I look forward to a re-energized front office and fresh approach to Memphis Grizzlies basketball under new leadership, while retaining the identity and values that have distinguished our team.”
Pera went on to thank Wallace and Hollinger for their past contributions to the team’s success and said he looks forward “to their contributions to our future ones.”
Bickerstaff had completed his first full season on the job after taking over as interim coach in the 2017-18 season. The organization had been complimentary over his handling of a difficult season of injuries, trades and roster turnover.
Wallace replaced Jerry West as Grizzlies GM in 2007, leading a renaissance of the organization that included acquiring franchise pillars Marc Gasol and Mike Conley. The Grizzlies reached the playoffs seven straight years before missing in each of the past two seasons.
Bickerstaff, 40, was 48-97 in two seasons with the Grizzlies, never making the playoffs. His only other NBA head-coaching experience was as interim in Houston in 2015-16 when he went 37-34.
He is the son of longtime NBA coach Bernie Bickerstaff.