The Evening News understands that the 38-year-old has ultimately paid the price after Hibs endured a frustrating end to the summer transfer window and was relieved of his duties this week as owner Ron Gordon continues revamping the senior management team.
Mathie joined Hibs as Head of Recruitment and spent six years in the role before his appointment as Sporting Director in January 2020 as part of a reshuffle sparked by the departure of Head of Football Operations George Craig.
During his stint as recruitment chief he was widely credited with helping to bring players such as John McGinn to the club and following his promotion to Sporting Director, played a key role in new contracts for key players such as Martin Boyle, Josh Doig, and Joe Newell.
But a number of events in the latter days of the transfer window are believed to have accelerated his departure.
Hibs attempted to do a late deal for St Mirren’s Jamie McGrath with Scott Allan and Drey Wright going in the other direction but ran out of time to get the move over the line, while the eventual arrival of Middlesbrough centre-back Nathan Wood came after more than one failed attempt to persuade St Johnstone to part with Jamie McCart.
That delay in bringing in defensive cover had already cost Hibs in Europe with club captain Paul Hanlon sidelined for the Europa Conference League third qualifying round second-leg encounter against HNK Rijeka in Croatia through injury and a depleted team eventually going down 4-1 on the night and 5-2 on aggregate.
Head coach Jack Ross, meanwhile, spoke repeatedly of his frustration after the club was unsuccessful in adding to his attacking options before the deadline and was forced to address rumours after the window that the club had been beaten to Barrie McKay's signature by city rivals Hearts.
Mathie, who turned out for Bournemouth, Coventry, and Motherwell as a player before stints with Celtic and the Scottish FA prior to joining Hibs, leaves having contributed greatly to the club’s return to the Scottish Premiership following their relegation in 2014 as well as the 2016 Scottish Cup success and last season’s third-place finish.