James Murdoch has stepped down as executive chairman of News International, the troubled British newspaper business that has been tainted by phone-hacking allegations.
Mr Murdoch will remain as deputy chief operating officer of parent group News Corporation run by his father Rupert, the BBC reports.
News International owns the Sun and the Times titles.
Last year, James Murdoch twice appeared before a British parliament's committee to answer questions as part of its inquiry into the phone-hacking scandal.
The scandal led the company to close its former News of the World title in July and has seen the arrests several former top editors.
James Murdoch will also remains chairman at satellite broadcaster BSkyB, of which News Corporation owns 39%.