In place untar and delete tar (or tar.gz)

shell unix sh tar gzip

for file in *.tar.gz; do tar xzvf "${file}" && rm "${file}"; done

Don't forget to quote your variables to account for funky filenames with whitespace.

shell unix sh tar gzip

Simply change the order of actions:

for i in *.tar.gz; do  tar xzvf "$i" && rm -r "$i"done

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