The Trojans' top brass had been reaching out to potential candidates to replace Swann in recent weeks, a source told FOX Sports' Bruce Feldman.
USC hired Swann, a four-time Super Bowl champion with the Pittsburgh Steelers, in April 2016. The Trojans won the 2017 Rose Bowl but weren't able to replicate that success during the rest of Swann's tenure.
Former compliance director Dave Roberts will take on the AD role on an interim basis while Folt and Co. search for the Pro Football Hall of Famer's permanent replacement.
Folt said the admissions scandal that rocked USC over the spring "was not a part of the decision" to part ways with Swann, according to Ryan Kartje of the Los Angeles Times.
Swann was also an All-American wide receiver for the Trojans from 1971-74. USC went undefeated and won the national championship in 1972.