Paul Hurst, 44, replaced Mick McCarthy but had to wait until October for his first – and only – league victory in charge.
A 2-0 defeat at Leeds on Wednesday was the seventh of his reign at Portman Road and proved to be his final match.
“I have decided that it is in the best interests of the football club that we appoint a new manager to take us forward,” said Ipswich owner Marcus Evans.
“Paul’s arrival here in the summer was welcomed by us all and we worked tirelessly to support him fully with his plans for player recruitment, training methodology, and backroom staff.
“But unfortunately those plans haven’t turned into positive results, which is why I have had to take this decision today.
“I am actively looking to appoint a new manager as soon as possible with experience, who will embrace the long-term vision we all have for the club and who can deliver the success that every Ipswich Town supporter craves,” Evans added.
Hurst took over after an impressive spell at Shrewsbury in which he took them to the League One play-offs after a third-place finish, having saved them from relegation the season prior.
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