NEW ORLEANS -- New Orleans' top prosecutor announced his resignation Tuesday as his office faces a discrimination judgment that could bankrupt it.

Orleans Parish District Attorney Eddie Jordan's resignation will be effective at the end of the day Wednesday. He'll be returning to work in the private sector.

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After Jordan took over the office from Harry Connick Sr. in 2003, he fired dozens of workers -- most of them white. They won a discrimination lawsuit, and Jordan has since lost several appeals.

Jordan was unlikely to get a bailout on the $3.7 million judgment from the city or state. Officials had said they wouldn't consider paying for the lawsuit unless Jordan stepped down.

"I hope my departure from the Orleans Parish district attorney's office will remove threat of the imminent seizure of the assets" of the office, Jordan said. "This is all about the best interests of the office."

New Orleans Mayor Ray Nagin said Tuesday that he and others were still working toward a satisfactory resolution on paying the plaintiffs.

Assistant District Attorney Keva Landrum-Johnson will take over after Jordan departs. According to the secretary of state's office, the governor will have to call a special election within 10 days of receiving Jordan's resignation letter because there's more than a year left on Jordan's term.

Landrum-Johnson has nine years of experience as an assistant district attorney. Recently appointed as chief of screening, she is a graduate of Tulane Law School. Landrum-Johnson has been chief of the juvenile division for two years and deputy chief of trials for two years.

"Ms. Landrum has agreed that she will not be a candidate in the upcoming election," Jordan said.

For her part, Landrum-Johnson said she would review the financial situation of the office and do her best to avoid any disruption in its operations. She's also planning to hold a news conference later in the week to address personnel changes.

"We have got to get this right," she said.

Jordan, meanwhile, has also been dogged by charges that he was ineffective. The furor became particularly heated after he dropped charges in two high-profile cases: One involved Michael Anderson, the suspect in five slayings, and another involved David Bond, accused of killing Hot 8 Brass Band drummer Dineral Shavers.

Shortly after the charges were dismissed, New Orleans Councilwoman Shelley Midura sent out a letter asking Jordan to resign. Some residents had "Recall Eddie Jordan" signs in their yards, and lawmakers talked of impeaching him on more than one occasion.

Just last week, Jordan's live-in girlfriend admitted she got a ride back to New Orleans from Baton Rouge with Elton Phillips, who's suspected of later robbing a person on the Westbank and shooting a New Orleans police officer.