Bruno Lage had been the head coach of the Wolves.
The 2-0 loss at the London Stadium was Wolves' fourth of the season and the club's hierarchy have decided it is time for a new manager.
Wolves spent £100m on new signings this summer as Lage looked to mold a team in his image, but the Portuguese has been unable to transform his side's fortunes.
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Wolves haven't won a game in the league since April 2, when they beat Villa.
He said after Wolves' most recent loss that they were under pressure.
We will keep working." The fans support us. We try to help them. We don't have goals or victories right now.
We have to keep working." We will work hard to bring victories for the team.
Next Saturday is the first game of the post-Lage era for Wolves, and they'll be travelling to London to take on the Blues.
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Adam Bate is a sports reporter for Sky Sports.
After 31 games, Bruno Lage had Wolves seventh in the league table and five points off of the top four. He has been out of a job since then.
There was one win in 15 games. They are the lowest- scoring team in the league. Since April, they have scored fewer goals than the team that was demoted.
Lage's goals have not been achieved with a team that doesn't score.
Although there were boos and chants towards the end of the 2-0 defeat to West Ham on Saturday evening, the majority of Wolves supporters remained hopeful. The talent within the team was thought to be the winner.
In his last two home games, Lage's name was chanted loudly and often. In their last 15 games, Dean and Stale had better records. It's bound to sour the mood a bit if you're in a league.
The events in London felt like the end of a manager's career. Ruben Neves is out of position in the defense. Podence is up front. The man is on the wing. The team didn't set up to play to their strengths.
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