The 49-year-old had just overseen a 5-0 thrashing at the hands of bitter rivals Derby and the Forest board decided enough was enough, with Neil Warnock widely tipped to take over from the Scot until the end of the season.
Davies was charged with leading Forest towards the Premier League but a run of eight win-less games left the Championship club outside of the play-off places in seventh, with Saturday's 5-0 defeat proving the final nail in the coffin.
But this season alone does not tell the whole story. Indeed, this is the second time Davies has left Nottingham Forest, having been sacked by the side in 2011 during his first spell at the club.
The Scot returned to Forest two years later but his second reign at the City Ground has proved even shorter-lived.
A variety of factors led to Davies' demise, with his side's recent form adding to problems caused by fallouts with the press, with Nottingham Forest banning several publications from coverage during the Scot's time in charge at the club.
Defenders of the 49-year-old, however, have pointed to the team's severe injury list in recent weeks and believe his sacking to be rather harsh. In fact, a sizeable portion of Forest fans are against the decision.
But there has been less sympathy from the media - and Derby County fans. Davies also managed Derby from 2006-07, with their supporters providing a strong reaction to his most recent sacking on Twitter.
Here, then, is a selection of responses to the Scot's sacking on social media...
Why do I feel relieved that Billy Davies has gone? I honestly feel he was bringing the reputation of the club down! #nffc— Allan Pritchard (@allan__85) March 24, 2014
Gutted to see Billy Davies leave, but after his second spell I´m sure he´ll be back. Neil Warnock could be a great replacement! #nffc— Will McGrath (@willtlmcgrath) March 24, 2014
I wish Billy Davies well and thank him for his efforts! Ridiculous decision to sack a manager when the season is almost over #NFFC— SamanthaLouiseDavis (@SamanthaDavis22) March 24, 2014
Lots of sympathy for Billy Davies...NOT. It appears it not just City fans that have a low opinion him #cheerio— Bill Johnson (@billjohnson0) March 24, 2014
#nffc I liked Billy Davies but got himself the sack no one else to blame— Harry Cobb (@HarryJamesCobb) March 24, 2014
Something weird about Derby and Forest uniting over their dislike of Billy Davies— Tall Paul (@TallPaul_H) March 24, 2014
Classic Billy Davies. Foster us against world mentality that works well for 3 months before imploding & he goes leaving club in tatters— James Windle (@MisterWindle) March 24, 2014