The board of the Florida-based appliance manufacturer said in a statement that Mr Dunlap was to be replaced by Peter Langerman. Mr Langerman said in a statement that outside directors had lost confidence in Mr Dunlap's leadership. Sunbeam lost $45m (pounds 28m) in the first quarter on a 4 per cent drop in sales.
Soon after his arrival at Sunbeam, Mr Dunlap cut its payroll by 12,000. Last month, he announced a further workforce reduction of 6,400 jobs. At his previous home, Scott Paper, he slashed 18,000 jobs and sold the firm to Kimberly Clark.
Only in February, Mr Dunlap negotiated a new three-year contract with the Sunbeam board worth $2 m a year. Still in good graces then, he boasted: "You can't overpay a great executive ... Don't you think I'm a bargain?"