The Panthers announced that secondary coach Perry Fewell was named interim head coach. Offensive coordinator Norv Turner will switch to special assistant to the head coach, while quarterbacks coach Scott Turner will transition to offensive coordinator.
"I believe this is the best decision for the long-term success of our team," Tepper said in a statement. "I have a great deal of respect for Ron and the contributions he has made to this franchise and to this community. I wish him the best. I will immediately begin the search for the next head coach of the Carolina Panthers."
Tepper said the organization will conduct a "comprehensive and thorough review" of its football operation and will add executives to "complement our current football staff."
"We are going to take a comprehensive and thorough review of our football operation to make sure we are structured for long-term sustained success," Tepper said. "Our vision is to find the right mix of old-school discipline and toughness with modern and innovative processes. We will consider a wide range of football executives to complement our current football staff.
"One change that we will implement is hiring an assistant general manager and vice president of football operations. We all must recognize that this is the first step in a process, but we are committed to building and maintaining a championship culture for our team and our fans."
Rivera was hired as the fourth head coach in Panthers history in 2011. In his nine-year tenure in Carolina, he compiled a 76-63-1 record in the regular season and a 3-4 postseason mark.
Rivera also guided the team to a Super Bowl appearance and three NFC South titles and finished as the winningest coach in franchise history. He was a two-time NFL Coach of the Year, but ended up with only three winning seasons since taking over in 2011.
Rivera, 58, posted a 12-16 record in the last two seasons after Tepper purchased the Panthers for an NFL-record $2.275 billion from longtime owner Jerry Richardson.