Trinity Mirror today (30 May) disclosed it is moving to a seven day publishing model and has appointed Lloyd Embley, editor of The People, as editor of the Daily Mirror and Sunday Mirror.
Wallace is leaving Trinity Mirror along with the editor of the Sunday Mirror, Tina Weaver.
The changes have been instigated by Mark Hollinshead, managing director of the Trinity Mirror nationals, who has been tipped as a strong candidate as replacement for the out-going chief executive Sly Bailey.
The move to one editorial and commercial operation is expected to result in considerable cost-savings for the embattled business, which report double-digit falls in ad revenues over the last year.
The national and regional newspaper publisher has also said early indications are that advertising revenues in May are likely to be down 10%.
As part of today’s changes, two new senior editorial roles have been created: Weekday editor of the Daily Mirror and a weekend editor of the Mirror, which combines the editorship of the Daily Mirror on Saturday and the Sunday Mirror. Both new roles will report to Embley, who is likely to make the appointments in the coming days.
Additionally, Paula Scott, business development director, has been appointed published director magazines.
One source close to Trinity Mirror says that Embley- who had been editor of The People since 2008- was chosen instead of Wallace and Weaver because of his commerical know-how and that he had performed well at The People despite not having the resources of the Daily Mirror and Sunday Mirror.
But it has also been suggested that Wallace and Weaver were firmily against the seven day publishing model.
Neither Wallace or Weaver were offered alternative roles after missing out on the top editor's role, it is thought.
The move to a seven day publishing operation mirrors a similar strategy Trinity Mirror introduced in Scotland across the Daily Record and Sunday Mail in 2011.
Commenting on today's changes, Trinity Mirror said: "The seven day organisation across the two titles is enabled through the company’s multi-million pound investment in the ContentWatcheditorial system.
"The new structure will ensure that our newsroom is fully equipped to achieve the company’s multi-media publishing strategy across our newspapers, online, mobile and new e-editions for tablet devices."
Hollinshead said: "At the core of our business the Daily Mirror is as strong as ever withy year-on-year circulations trends, despite widespread cut price competition, our performing the market in 11 out of the last 12 months."
In March this year, Trinity Mirror reported a 40% fall in pre-tax profits to £74m after being hit by a £22m rise in printing costs, in the 52 weeks to 2011.
The publisher of the Daily Mirror and more than 100 titles, including the Liverpool Echo, reported pre-tax profits of £74.4m, compared to £123.7m the year before.
Trinity Mirror has axed hundreds of roles over the past few years, in an attempt to offset tough market conditions.