Philadelphia finished its season Wednesday with a loss to Orlando, a decision that left the Sixers with a 27-55 record and tied for 12th in the 15-team NBA Eastern Conference. Only five teams in the league had worse records.
Philadelphia missed the playoffs for the first time in three seasons.
Sixers General Manager Ed Stefanski issued a statement saying: "Decisions of this nature are never easy but I am making this change because I didn't feel significant progress was being made on either end of the court. As the season progressed, it became increasingly clear to me that this was necessary in order to provide a new direction for our team and gain more continuity."
Philadelphia marked the third NBA coaching stop for Jordan, who previously led Sacramento (1996-98) and Washington (2003-08). He has a career coaching record of 257-343.
Jordan has two years remaining on his contract with the Sixers, a deal that is worth $6 million.