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Johnson was in his second full season as the Lakers, who are 37-44 years old and will play in the playoffs.
The Lakers website says Johnson and managing director Rob Pelinka are responsible for all basketball decisions. This included firing and hiring coaches and signing contracts with players.
Johnson returned to the Lakers on February 2, 2017 to advise the owners on basketball and business. He did not waste time to say what his intentions were and he was appointed responsible for the weeks later.
Walton is 98-147 as a Lakers coach, who has not played in the playoffs since 2013.
Johnson said on Tuesday that he was enjoying himself more as a mentor for the players, as a big brother figure. He said that he could not do that in his commercial role.
He seemed to imply that he should have fired Walton on Wednesday, and that pushed him to retire.
"Tomorrow, I should be influencing someone's livelihood and on his life," he said. "It's not fun for me, it's not who I am."
He complained of having stabbed his back and murmured.
"I do not like many things that have happened without having to continue," he said.
Jill Martin from CNN contributed to this report.
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