The side have struggled in recent weeks, losing eight of their last nine games, leaving them with a 16-33 record.
Owner Dan Gilbert said in a statement: "This has been a very difficult period for the franchise. We have severely underperformed against expectations. Just as this is completely unacceptable to our loyal and passionate fan base, season ticket holders and corporate partners, it is also just as unacceptable to our ownership group.
"I can assure everyone who supports and cares about the Cleveland Cavaliers that we will continue to turn over every stone and explore every possible opportunity for improvement to shift the momentum of our franchise in the right direction. There is no one in our entire organization who is satisfied with our performance, and to say that we are disappointed is an understatement.
"We all know the great potential of our young talent, seasoned veterans, as well as our recent all-star addition. We believe a change in leadership was necessary to establish the best possible culture and environment for our entire team to flourish."
The Cavaliers travel to the Washington Wizards tomorrow.