The Duke and Duchess of Sussex have announced they will step back as “senior” royals and work to become financially independent.
In a statement, Prince Harry and Meghan also said they plan to split their time between the UK and North America.
The BBC understands no other royal – including the Queen or Prince William – was consulted before the statement and Buckingham Palace is “disappointed”.
Senior royals are understood to be “hurt” by the announcement.
Last October, Prince Harry and Meghan publicly revealed their struggles under the media spotlight.
In their unexpected statement on Wednesday, also posted on their Instagram page, the couple said they made the decision “after many months of reflection and internal discussions”.
Over Christmas, the couple took a six-week break from royal duties to spend some time in Canada with their son, Archie, who was born in May.
BBC royal correspondent Jonny Dymond said the couple have “considerable savings”, including Harry’s inheritance from Princess Diana’s estate and the money Meghan earned as an actress.
But, asked about whether they might get jobs, he added: “There is a problem for members of the Royal Family – relatively senior ones, even if they say they’re no longer senior – getting jobs, because they are seen to monetise their brand and you run into a whole host of questions about conflict of interest”
Harry is sixth in line to the throne – behind Prince Charles, Prince William and his three children.
Prince Harry also responded to reports of a rift between him and his brother William, the Duke of Cambridge, by saying they were on “different paths”.
In October, the duchess began legal action against the Mail on Sunday over a claim that it unlawfully published one of her private letters.
And the duke also began legal action against the owners of the Sun, the defunct News of the World, and the Daily Mirror, in relation to alleged phone-hacking.
Prince Harry also released a statement, saying: “I lost my mother and now I watch my wife falling victim to the same powerful forces.”
The duke and duchess moved out of Kensington Palace, where the Duke and Duchess of Cambridge live, in 2018 to set up their family home in Windsor.
Then last summer, they split from the charity they shared with Prince William and Kate to set up their own charitable projects.