Lee Bowyer was dismissed as head coach of St Andrew's.
After the end of November, Blues had won just four times in 26 league games, finishing 20th in the Championship table.
They would have finished lower if Derby hadn't been deducted 21 points.
"The board of directors believe this to be the necessary course of action and have acted swiftly ahead of the 2022-23 campaign," read a Blues statement.
The replacement head coach and support staff will be announced soon.
Andy Marshall is no longer employed by the club.
When Bowyer took over at St Andrew's, the club were three points above the drop zone.
In 2020-21, he led Blues to an 18th place finish. When they won three of their first six games, they were fourth in the table.
In 40 games, Bowyer's side won eight times, but they lost two of them and shipped 17 goals.
The owners of Trillion Trophy Asia have appointed nine managers since taking control of the club.
The board would like to thank Lee for all of his work at the club.
Lee's dedication was never questioned. St Andrew's will always welcome him back.
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