The decision comes after a run of just two losses in their last 12 games saw them move out of the relegation zone, while a 2-2 draw with Chelsea on Wednesday moved them three points clear of the bottom three.
However, Le Tissier believes that chairman Nicola Cortese's tenure in charge of the club means that no decision is surprising to him.
"It doesn't surprise me. It's a strange time of the season, they've lost two of the last 12 games and came from 2-0 down to draw at Chelsea. [But] it seems to be the way the club's being run under the chairman. Nothing's surprising and it's a bit of a laughing stock," said Le Tissier.
"I'm shocked at the timing, it's very strange and it's an odd thing to come to terms with today. I think he had a bit of pressure early on this season, people thought it might happen then; maybe they couldn't get the man they wanted then. It's all very strange.
"I think everyone is taken aback by it all. They have come to terms with life in the Premier League, had a tough start and have turned things round pretty well."
Le Tissier spent his entire career at Southampton, scoring 210 goals in 540 appearances for the club.