Matt Christensen, Robyn Harvey and Gus Cox were told of the decision, which was effective immediately, on Wednesday.

"As an organisation Snowy Valleys Council must evolve in order to continue to deliver quality, efficient and sustainable services for our community," general manager Matthew Hyde said in a statement.

"Consistent with this direction I have undertaken a review of the senior leadership team and in consultation with council have decided to terminate the contracts of the three directors.

"We have been working towards better understanding our resourcing requirements. Specifically, to ensure that we are financially sustainable over the long term and able to generate sufficient funds to provide the levels of service and infrastructure agreed with our community.

"Over the coming months we will be undertaking further organisational redesigns to ensure that council is aligned with our community and organisational priorities. A new structure will be implemented by June 30, 2020.

"The director positions have been filled temporarily to provide continuity and to oversee the immediate work of council.

"While transitions may seem disruptive in the short-term I am confident that we have a committed and skilled workforce who continue to provide a high standard of service to the Snowy Valleys Council communities.

"Council treats the professionalism and privacy of staff very seriously and our outgoing directors have made significant contributions to the initial establishment of Snowy Valleys Council and I thank them for their contributions and wish them well in their future endeavours."

Snowy Valleys Council was created in May 2016 by the forced merger of the former Tumut and Tumbarumba shire councils.

Mayor James Hayes said this is the first significant change to the structure put in place at that time.

He said the decision to sack the directors was because the council was "looking for a new set of skills".

"They are lovely people who have worked very hard and done their job," Councillor Hayes said.

"We are a very large council in area with a diverse group of residents. We have been been under constant criticism by the community and we are looking to best suit the needs of the community."