Denver announced the decision to part ways with the 46-year-old on Monday. The Chargers beat the Broncos 23-9 on Sunday at Mile High Stadium, handing Denver its fourth consecutive loss.
"I spoke with Vance this morning and thanked him for all of his hard work as our head coach," Broncos president of football operations and general manager John Elway said in a statement. "Although we decided to make this change, I believe Vance is a good football coach who has a bright future in this league."
"Vance made a lot of strides and deserves credit for how hard and competitively the team played this season. There's always going to be a high standard here-The bottom line is we need to win more football games. We're excited about the foundation that's being built and look forward to putting in the work to get the Broncos back on the winning track."
The Broncos began the season 2-0 before losing six of their next seven games. Denver won three straight to push its record to 6-6, before slumping down the stretch. The Broncos finished in third place in the AFC West.
"Vance put his heart into coaching this team, and I appreciate the way he represented the Broncos with such professionalism," Broncos president and CEO Joe Ellis said. "On behalf of our organization, I thank Vance, his wife Holly and their family for everything they did for our team and community."
"While we've made progress, we still have a lot more work to do and need to get better in all areas. In talking with John, I believe we're headed in the right direction and am confident in him leading our coaching search. John has my full support in making whatever changes are necessary to improve our team."
Joseph posted an 11-21 mark in two seasons with the franchise. He served as the Miami Dolphins' defensive coordinator for one season before being hired by the Broncos. He worked as a defensive backs coach for the San Francisco 49ers, Houston Texans and Cincinnati Bengals before joining the Dolphins in 2016.