The Cherries were thrashed at Anfield in a Premier League record equalling defeat as they suffered their third loss of the season since promotion back to the top-flight.
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Although they did beat Aston Villa on the opening day of the season, they also lost to Manchester City and Arsenal as they shipped 16 goals in those matches.
Bournemouth chairman Mxim Demin said: “I would like to place on record my gratitude to Scott and his team for their efforts during their time with us. Our promotion back to the Premier League last season under his tenure will always be remembered as one of the most successful seasons in our history.
“However, in order for us to keep progressing as a team and a club as a whole, it is unconditional that we are aligned in our strategy to run the club sustainably. We must also show belief in and respect for one another.
“That is the approach that has brought this club so much success in recent history, and one that we will not veer from now. Our search for a new head coach will begin immediately.”
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