The Orlando Magic fired general manager Rob Hennigan on Thursday after a five-season tenure without a playoff appearance, team CEO Alex Martins announced.

"The facts are we regressed this year and we made the decision that five years under this leadership team was enough to show improvement, which we have not,'' Martins said Thursday afternoon. "I believe we have provided all of the assets, the autonomy and the tools necessary over the past five years in order to build a successful program.''

Hennigan, 35, was the NBA's youngest general manager. The team posted a 132-278 (.322) record under his guidance -- the second-worst in the NBA over the five seasons and the worst five-year stretch in team history.

"We appreciate Rob's efforts to rebuild the team, but feel we have not made any discernible improvement over the last few years specifically," Martins said in a statement. "It's time for different leadership in basketball operations. We certainly wish Rob and his family well."

Assistant general manager Scott Perry was also fired. Coach Frank Vogel, who led the Magic to a 29-53 record and their fifth straight last-place finish in the Southeast Division, is in the first year of a long-term contract and is expected to be retained.

Matt Lloyd, who also served as assistant general manager, will take over as interim GM and will be considered for the full-time job.

Lloyd is in control for now and will head up the team's NBA draft vetting process next month. Orlando has two first-round draft picks. The team is slated to have the No. 5 overall pick with a 8.8 percent chance of winning next month's draft lottery.

"Matt brings solid experience and his appointment as general manager on an interim basis will allow us to seamlessly continue our preparations for the upcoming draft,'' Martins said.

League sources say Orlando has interest in hiring former Magic star Grant Hill as its new face of basketball operations, but sources told ESPN's Marc Stein on Thursday that Hill has no plans to leave his minority ownership role with the Atlanta Hawks.

As ESPN reported March 20, Golden State Warriors assistant general manager Travis Schlenk and Detroit Pistons executive Pat Garrity are expected to emerge as candidates for the GM post. Schlenk broke into the league with Orlando, and Garrity is another former Magic player.

Hennigan had a poor draft record as he made three top-five picks -- Victor Oladipo, Aaron Gordon and Mario Hezonja -- and failed to produce an instant star.

Several of his major trades also fizzled, the most recent being the acquisition of Serge Ibaka in June, which cost the Magic a lottery pick. Ibaka was traded to the Toronto Raptors in February. Trading away Tobias Harris and the draft rights to Rookie of the Year candidate Dario Saric did not help.

Hennigan's first major move was trading Dwight Howard to the Los Angeles Lakers in a three-team deal in 2012 that signaled the beginning of a rebuilding phase after he was hired.

"Ultimately what we weren't able to do is compile a roster of talent and individuals to work together to get us back to the playoffs in five years,'' said Martins, whose team has a top-10 payroll this season. "That's the compilation of a lot of different decisions and moves that were made over those five years that didn't get us to the playoffs.''

Rob Hennigan is out as Magic general manager after failing to make the playoffs in any of his five seasons in charge. AP Photo/Orlando Sentinel/Stephen M. Dowell

Vogel said he was informed of the move by Martins during a meeting early Thursday.

"This is a tough day, they are both good men and good basketball people,'' Vogel said. "I definitely wish them well.''

The Magic has also had a constant revolving coaching door under Hennigan, who hired three coaches in his five years. Hennigan hired unproven Jacque Vaughn in 2012 and brought in Scott Skiles in 2015. Skiles lasted just a season before resigning and Hennigan hired defensive-minded Vogel last offseason.

Vogel insists he isn't concerned about his future with the team as it searches for a new GM.

"I've got a lot of trust in Alex Martins and the DeVoss family,'' he said. "They've shown me an incredible amount of support and belief in me. I trust that he is going to make a great choice in whoever he brings in here.''

Hennigan faced an uphill challenge from the outset with Howard, a perennial All-Star, demanding a trade prior to his hiring. The team has not been to the postseason since Howard's departure as the roster has been primarily filled with young and unproven talent.

The team has not developed the young players drafted under Hennigan, and has failed to lure big-name free agents during his tenure.

"Some would say he didn't have the benefit of luck in the NBA Lottery, which is true,'' Martins said. "But sometimes you have to make your own luck, which we believe we haven't done enough of.''

The Associated Press contributed to this report.