Last week's revelations about Penn's work for the Colombian government only intensified the grumbling.
After a report in the Wall Street Journal, Penn acknowledged he had met with Colombian Ambassador Carolina Barco to discuss a pending trade deal, which the Colombian government and the Bush administration are trying to get through Congress.
On Friday, Penn released a brief statement in which he called the meeting "an error in judgment" and apologized.
The meeting was particularly embarrassing because Clinton has campaigned against new trade agreements and vowed to renegotiate the North America Free Trade Agreement drawn up by her husband's administration.
Colombia has since canceled its contract with Penn's company.
Fenn, the Democratic strategist, said Penn's demotion might reflect union unhappiness as much as anything. But he cautioned that Penn's continued influence could be a problem. "I think a clean break is always best," he said.
The move means an enhanced role for Howard Wolfson, the campaign's communications director, who had clashed with Penn over Penn's advice that Clinton portray herself as tough and experienced while downplaying other qualities. With Wolfson in a more commanding position, Clinton's softer side might get more emphasis.
Working with Wolfson will be Geoff Garin, a veteran pollster with long ties to labor.
In an interview with The Times in December 2006, before Clinton had declared her candidacy, Garin said one of the campaign's challenges would be controlling her team.
"The question is: Will she be able to put something together that's disciplined and decisive?" Garin said at the time.
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noam.levey@latimes.com
peter.nicholas@latimes.com
Times staff writer Stephen Braun contributed to this report.
