diff --git a/documentation/domains/Domain.json b/documentation/domains/Domain.json
index 8e54927b4be..862291d8aba 100644
--- a/documentation/domains/Domain.json
+++ b/documentation/domains/Domain.json
@@ -378,7 +378,6 @@
           "minimum": 1
         },
         "logHomeLayout": {
-          "default": "ByServers",
           "description": "Control how log files under `logHome` are organized when logHome is set and `logHomeEnabled` is true. `Flat` specifies that all files are kept directly in the `logHome` root directory. `ByServers` specifies that domain log files and `introspector.out` are at the `logHome` root level, all other files are organized under the respective server name logs directory  `logHome/servers/\u003cserver name\u003e/logs`. Defaults to `ByServers`.",
           "type": "string",
           "enum": [
diff --git a/kubernetes/crd/domain-crd.yaml b/kubernetes/crd/domain-crd.yaml
index 01aa3751a52..f987311f767 100644
--- a/kubernetes/crd/domain-crd.yaml
+++ b/kubernetes/crd/domain-crd.yaml
@@ -5,7 +5,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    weblogic.sha256: dfb1401d47ad44961c30bb2ab266cb8adcf12e8933bf510d48838ffb80766065
+    weblogic.sha256: a75abc92b2e2f3a344dc65eaed6e1e9aa5621ba540c0956db32056592f9ffb46
   name: domains.weblogic.oracle
 spec:
   group: weblogic.oracle
@@ -926,7 +926,6 @@ spec:
                 minimum: 1
                 type: integer
               logHomeLayout:
-                default: ByServers
                 description: Control how log files under `logHome` are organized when
                   logHome is set and `logHomeEnabled` is true. `Flat` specifies that
                   all files are kept directly in the `logHome` root directory. `ByServers`
diff --git a/operator/src/main/java/oracle/kubernetes/weblogic/domain/model/DomainSpec.java b/operator/src/main/java/oracle/kubernetes/weblogic/domain/model/DomainSpec.java
index 75e249ab5a0..930cad5d8f2 100644
--- a/operator/src/main/java/oracle/kubernetes/weblogic/domain/model/DomainSpec.java
+++ b/operator/src/main/java/oracle/kubernetes/weblogic/domain/model/DomainSpec.java
@@ -129,7 +129,6 @@ public class DomainSpec extends BaseConfiguration {
         + "`ByServers` specifies that domain log files and `introspector.out` are at the `logHome` root level, "
         + "all other files are organized under the respective server name logs directory  "
         + "`logHome/servers/<server name>/logs`. Defaults to `ByServers`.")
-  @Default(strDefault = "ByServers")
   private LogHomeLayoutType logHomeLayout = LogHomeLayoutType.BY_SERVERS;
 
 
diff --git a/operator/src/main/resources/scripts/startNodeManager.sh b/operator/src/main/resources/scripts/startNodeManager.sh
index 89ae11930ae..6d5af9c7a81 100644
--- a/operator/src/main/resources/scripts/startNodeManager.sh
+++ b/operator/src/main/resources/scripts/startNodeManager.sh
@@ -133,7 +133,7 @@ if [ "${SERVER_NAME}" = "introspector" ]; then
 else
   # setup ".out" location for a WL server
   serverLogHome="${LOG_HOME:-${DOMAIN_HOME}}"
-  if [ -z ${LOG_HOME_LAYOUT} ] || [ "BY_SERVERS" = ${LOG_HOME_LAYOUT} ] ; then
+  if [ -z ${LOG_HOME} ] || [ "ByServers" = ${LOG_HOME_LAYOUT} ] ; then
     serverLogHome="${serverLogHome}/servers/${SERVER_NAME}/logs"
   fi
   export SERVER_OUT_FILE="${serverLogHome}/${SERVER_NAME}.out"