The move follows a review that found the system is top-heavy with managers and should focus more on supporting health-care providers.
The changes will include reassigning 75 other senior executives to positions where they will support front-line staff.
Health Minister Fred Horne says more needs to be done to make patients and people the system's top priority.
The review says greater performance should be expected considering how much money the government spends on health care.
Horne fired the entire Alberta Health Services board in June after a dispute over executive pay and perks.