The morale of the beleaguered TODAY Show has reached an all time low after director Joe Michaels, who has held the post for 18 years, was recently demoted, Breaking Celebrity News has learned exclusively.

Adding to the low morale, sources also say producers are growing increasingly frustrated that Matt Lauer has remained unscathed since Good Morning America became the top rated morning news program.

"It's almost an open joke around the halls of the TODAY offices that Matt Lauer could probably drop an F bomb on the air, and the network would still stand by him. Meanwhile, Joe Michaels, who has been director of the show since 1989, has been demoted. Jim Bell, former executive producer, was also forced out, and no one can forget Ann Curry," a show insider told Breaking Celebrity News exclusively.

"There has been an abnormally high turn over of producers on TODAY, and they have been relying on freelancers, a practice they didn't embrace in the past. There are plans to design a new set, but that isn't going to bring viewers back! It's clear, Matt has to go, but NBC News just doesn't see the writing on the wall."

According to the New York Times, the latest staffing change took Michaels completely by surprise.