The Glovers are in serious danger of suffering a third consecutive relegation.
Saturday's defeat to Northampton Town has left the Glovers bottom of the Football League, and the club's chairman John Fry confirmed poor results are the reason for Sturrock's departure.
"We are very sad that the board had to reach this decision today and we thank Paul for his hard work during his time at Huish Park.
"We wish him well for the future, however we all felt that in the light of recent results we had no alternative. We will now begin our search for a new manager," Fry's statement read.
The Huish Park outfit are without a win in League Two since September, in a run that now stretches back 12 games, and leaves them two points off safety.
Should the club fail to get themselves out of danger, then they would have suffered three consecutive relegations - with the previous two seeing the side finish bottom of their respective division - in what would be a very sad plight for a team that had shaken off their reputation as the minnows, that often caused a cup upset, by getting promoted to the Championship in 2013.
The statement added that former Yeovil midfielder Darren Way will take temporary charge of the side, with two-time manager of the club Terry Skiverton acting as his assistant, while they search for the person that they hope will keep them in the Football League.
After just eight months at the club, Sturrock will also be starting his search for a new employer, with the former Southampton and Sheffield Wednesday boss a seasoned campaigner with plenty to offer someone.