Denver announced the move on Monday afternoon. Quarterbacks coach Bill Musgrave will take over as offensive coordinator. The Broncos have lost six consecutive games and scored more than 19 points only once in their last eight games.
"After careful consideration, I've named Bill Musgrave our offensive coordinator for the rest of the season and made the difficult decision to part ways with Mike McCoy," Broncos coach Vance Joseph said in a statement Monday.
"Bill will handle all play-calling duties with Klint Kubiak taking over as our quarterbacks coach. Bill is an experienced coordinator and play-caller in this league, and I'm confident he will help get our offense back on track."
The Broncos hired McCoy in January to replace offensive coordinator Rick Dennison. The Los Angeles Chargers fired McCoy on Jan. 1. The 45-year-old was the Broncos' offensive coordinator from 2009 to 2012 before being hired to coach the Chargers in 2013.
"I have a responsibility to do what's best for our football team," Joseph said in a statement. "Although this wasn't an easy decision, we needed to make this change. We have to play a more efficient brand of football offensively as we begin the final stretch of our season."
"Mike is an outstanding coach and a great person. He had a lot of opportunities this offseason, and he chose us. I have the utmost respect for Mike and wish him all the best in the future."
McCoy, who owns a 27-37 record as an NFL head coach, entered the NFL as a quarterbacks coach for the Carolina Panthers in 2000.
Musgrave, 50, was the Oakland Raiders' offensive coordinator in 2015 and 2016, leading the unit to a top-10 finish in 2016.
"I'm disappointed that things didn't work out because this is a special organization and a great place to be," McCoy said in a statement from the Broncos. "I want to thank Vance for the opportunity he gave me and the entire organization from Mr. B all the way on down. I appreciate the hard work of our players and was proud to work with them along with the rest of our coaching staff. My family and I loved it here, and I'm very thankful for my time with the Denver Broncos."
Musgrave has 20-years of experience as a coach. He has spent 11 years as an offensive coordinator. Musgrave has coached for the Raiders, Minnesota Vikings, Jacksonville Jaguars, Carolina Panthers and Philadelphia Eagles.
Denver ranks No. 18 in total offense, No. 24 in scoring and no. 30 in touchdown efficiency.