Ms. Hochul, a Democrat, confirmed Mr. Sullivan’s resignation in a separate brief statement. The departure comes at a politically inconvenient time, as she is putting the final touches on a $229 billion state budget that is a month overdue.
“I was disappointed by what was described in The New York Times story about Adam, and he and I agreed that he should step back,” she said.
A longtime friend and adviser to Ms. Hochul, Mr. Sullivan, 42, amassed considerable influence after she unexpectedly became governor in August 2021. He helped build her administration, oversaw her widely criticized campaign for a full term and recently took charge of reviving the embattled state party.
Without a defined job title and no social media profile, he operated largely out of public view from his home 1,700 miles away in Colorado. After The Times drew attention to it last week, the arrangement drew harsh criticism from fellow Democrats, who bristled at the idea that Ms. Hochul had paid an out-of-state consultant — one who possessed few relationships to political actors in the state — more than $500,000 to help steer her governorship.
Mr. Sullivan also faced dissent from within Ms. Hochul’s campaign team and the executive chamber. The Times’s report cited more than 15 colleagues who said that Mr. Sullivan had disparaged subordinates, especially young women, froze out aides who disagreed with him and often shifted blame to others when the campaign faltered.