Shira Goodman, Staples' president of North America operations, will become interim CEO.
Sargent will continue to serve as director and non-executive chairman through the company's 2016 fiscal year ending on January 28, 2017.
"The process to identify a permanent CEO will be led by a special committee of the Board which will consider both internal and external candidates with the support of an executive search firm," the Framingham, MA-based office supplies giant said.
Shares of Staples closed higher by 1.03% to $8.80 on Tuesday.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity.
However, the team also finds weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: SPLS