Sherwood was dismissed at Villa Park earlier today, after a disastrous run of results since the start of the season has left them at the bottom of the Premier League table.
And Souness says that Sherwood can have few complaints over losing his job, as he simply wasn't getting good enough results.
"You're not surprised, that's the game today," Souness saiid. "He spent £50 million in the summer, and they're not seeing anything for that return. I'm not surprised.
"Villa are one of those clubs that feel they should be nearer the top than the bottom, and they are a big club. They could be a very big club, not so along ago they were champions of Europe.
"I think that it's the way the game rolls. You have to get results. They're now a club that will be thinking we could be getting relegated this season, so they've made the change."
Jamie Carragher was slightly more sympathetic with Sherwood, when giving his view on the 46-year-old's sacking.
The former Liverpool defender claims that Sherwood did a great job last season, and he feels that the blame for their poor form this campaign cannot be lied solely at the manager's door.
"He did a great job in keeping them up and getting them to a cup final last season," Carragher added. "I think he lost his two best players in Christian Benteke and Fabian Delph.
"But there was a lot of players bought in the summer, and it's the manager who loses his job. There is more to it than a manager at Villa, though. This is a club where four or five times in a row the manager hasn't got it right, it's more than one man.
"Villa are a big club in this country. They should always be looking to claim a Europa League position."
Sherwood leaves Villa after they were beaten 2-1 by Swansea City at the weekend, and the side are now winless in their last nine league matches.
The club have placed Kevin MacDonald in temporary charge of first-team matters, with their next game coming against Norwich City in the Capital One Cup on Wednesday evening.