The Cherries suffered a fourth consecutive defeat at home to struggling Sheffield Wednesday on Tuesday night.
Tindall, 43, spent the majority of his playing career at the south-coast club. He succeeded Eddie Howe as manager in August following their relegation from the Premier League.
A club statement read: “AFC Bournemouth have today parted company with manager Jason Tindall.
“It is a decision which has not been taken lightly, given Jason’s outstanding commitment to the club as a player, assistant manager and manager.
“However, recent performances and results have fallen well below the board’s expectations.
“We feel a change is needed now in order to give the club the best possible chance of achieving the goals that were clearly set out last summer.”
Bournemouth are currently sixth in the Championship table, 13 points behind leaders Norwich.
Tindall, who played more than 170 times for the Cherries, spent several seasons as Howe’s assistant. He was a big part of the club’s fairy-tale rise from the brink of extinction to the Premier League.
He was given his chance as manager following Howe’s departure last summer and initially made a strong start. However, the Cherries have registered just one victory in the league this year.
The club statement added: “We would like to place on record our thanks to Jason for his services to AFC Bournemouth over the past 22 years.
“He is someone who is fondly thought of throughout the club. He has played an important role in rescuing the club from its darkest days and taking it on the greatest journey it has ever had.
“Jason will always be welcome at Vitality Stadium. We would like to wish him every success for the future.”
Jonathan Woodgate has quickly been installed as favourite for the job following Tindall’s dismissal.
The former Middlesbrough boss joined the Cherries as a first-team coach just last week. While initially brought in to assist Tindall, he may now be propelled into the top job.
A more ambitious appointment might be Frank Lampard. As per leading bookkmakers, the ousted former Chelsea boss is second favourite for the position.
Having left Chelsea last week, it remains to be seen whether he will want a break before taking up another management position.
Also linked is his former Chelsea teammate John Terry. He has been cutting his teeth alongside Dean Smith as Aston Villa’s assistant boss. It’s felt the former England captain may be ready to make a go of things in his own right.
And finally, the Cherries are also being linked once again with Howe. Having left the club over the summer, he is yet to take up another role. It remains to be seen whether either party would consider a third stint in charge for the 43-year-old.