Liberal Leader Stephane Dion is reassigning his party's national director in one of several shuffles expected this week, while another member from Quebec has withdrawn his candidacy.
Jamie Carroll is one of Dion's closest associates, but sparked controversy over purported comments he made about hiring Quebecers.
Last week, during a closed-door meeting, Carroll is alleged to have said that if he hired more Quebecers, he would also have to hire more Chinese staffers. Some at the meeting took offence to the alleged remarks, and waves of unrest rippled through much of the party, especially among Quebec ranks.
Even deputy leader Michael Ignatieff called for Carroll's dismissal.
Dion stood by Carroll, claiming he was misinterpreted and rejected calls for his resignation. But on Tuesday, word emerged that Dion was poised to replace him in an effort to quell dissent within the party.
According to The Canadian Press, the move is not being described as a firing or resignation, but rather as a reassignment.
Carroll's move is expected to be just one of many announced this week, possibly on Thursday.
According to CTV's Roger Smith, Johanne Senecal, who once advised former Quebec premier Robert Bourassa, will become Dion's top adviser and head his office, replacing Marcel Mass who is resigning due to health issues.
Andrew Bevan is expected to remain as Dion's chief of staff.
Meanwhile, a Quebec Liberal candidate announced his resignation from the party Monday citing poor leadership by Dion.
Pierre-Luc Bellerose, who had wanted to run for the Joliette riding, decided to leave the party just days after former astronaut and star Liberal candidate Marc Garneau withdrew his candidacy.
Bellerose said he wanted Dion to resign as leader and criticized him for several poor decisions, apparently referring to Garneau's departure.
The embattled Dion has suffered several blows recently, including losses in three Quebec byelections.
And last week, Paul Leduc, former mayor of a Montreal suburb, announced he won't be running for the party.
He cited inaction on the part of the Liberal Party as part of their reasoning.