Owner Michael Jordan announced the move in a release by the team on Wednesday, a day after the Bobcats were outscored 31-12 in the fourth quarter in their fourth straight loss.
"I met with Coach Brown two weeks ago about the team's performance and what we could do to improve it," Jordan said. "We met again this morning after practice. The team has clearly not lived up to either of our expectations and we both agreed that a change was necessary."
The 70-year-old Brown, a Hall of Fame coach who was in the third season of his 13th professional and college head coaching job, had been upset with his team for weeks. The Bobcats (9-19) had lost three games by 31 or more points in 10 days before Tuesday's fourth-quarter meltdown against Oklahoma City.
Brown, who had two years left on his contract, didn't immediately return a message on his cell phone seeking comment.
"This was a difficult decision for both of us, but one that needed to be made," Jordan said. "I want to thank Larry for everything he has done for our team. He has played a key role in this organization's development including coaching us to our first-ever playoff appearance last season.
"Larry will continue to be a valuable advisor to me regarding the team."
No successor was immediately named and Jordan said a search would begin immediately. The Bobcats are off until Monday when they host Detroit.