“After much thought and careful consideration, I and I alone, have come to the conclusion that I am not the right head coach for this team,” said Skiles. “Therefore, effective immediately, I resign my position as head coach of the Orlando Magic. I realize this type of decision can cause much speculation. The reality though is in the first sentence. It is simple and true. Any other rumors are pure conjecture.
Definitely unexpected. As noted in that article, he's usually not the one making the decision that he's not the right coach for a team; the front office generally comes to that conclusion when his players get burned out on him after a couple of seasons.