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Liverpool's 1-1 draw at Everton could not save manager Brendan Rodgers from the sack, a decision announced three hours after the end of the game.
Romelu Lukaku equalised for the hosts after Danny Ings had headed Liverpool in front.
"Although this has been a difficult decision, we believe it provides us with the best opportunity for success on the pitch," said a club statement.
"The search for a new manager is underway and we hope to make an appointment in a decisive and timely manner."
The under-fire Northern Irishman has cut an increasingly isolated figure in recent weeks after a string of disappointing results has left his team 13th in the Premier League table and looking like a side short on both creativity and cohesion.
