However, despite having a 4-13 record in 2024, including a 0-4 start, General Manager Trent Baalke was retained.
"I strongly believe it is possible next season to restore the winning environment we had here not long ago," Khan said.
"I will collaborate with general manager Trent Baalke and others, within and close to our organization, to hire a leader who shares my ambition and is ready to seize the extraordinary opportunity we will offer in Jacksonville."
In his first season as head coach, Pederson guided the Jaguars to a spot in the Playoffs, and has an overall record of 22-29.
"As much as Doug and I both wish his experience here in Jacksonville would have ended better, I have an obligation first and foremost to serve the best interests of our team and especially our fans, who faithfully support our team and are overdue to be rewarded. In that spirit, the time to summon new leadership is now."