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The Cabinet Office says the move is "by mutual agreement" but it follows months of negative media reports about his performance.
Judge John Dodd KC says "perverse and depraved" Vincent Chan had "lost all sense of moral compass."
The outgoing director general told staff about the savings during an internal call on Thursday.
How much attention did you pay to what happened in the world over the past seven days?
The parents of two children who say they warned nursery staff about Chan tell the BBC they felt ignored.
The last reported sunshine had been on 21 January - the longest sunless period since records began in 1957.
The Cabinet Office says the move is "by mutual agreement" but it follows months of negative media reports about his performance.
Police say the suspect's firearms licence expired two years ago, and exactly who owned the guns used in the attack is unclear.
Unions angry, but government says it demonstrates its commitment to workforce.
Former Chelsea and Manchester City winger Raheem Sterling joins Dutch club Feyenoord on a deal until the end of the season.