Orlando finished the 2020-21 season with a 21-51 record, third worst in the league.
Orlando and head coach Steve Clifford have mutually agreed to part ways, a move first reported by ESPN's Adrian Wojnarowski.
Clifford finished his third season going 96-131 with the franchise and making the playoffs twice during his tenure. He had one full season remaining on the four-year contract he signed in 2018.
The Magic finished the 2020-21 season at 21-51, the league's third-worst record and last in the Southeast Division. Orlando started the season 5-2 before star guard Markelle Fultz tore his ACL in January and missed the remainder of the season.
The team also dealt with injuries to forward Jonathan Isaac and others throughout the season. During the NBA trade deadline in March, Orlando traded All-Star center Nikola Vučević, Evan Fournier and Aaron Gordon in exchange for two first-round picks from the Chicago Bulls and one first-round pick from the Denver Nuggets.
In Orlando, Vučević was averaging 24.5 points and 11.8 rebounds per game, shooting 40.6% from three-point range.
Clifford took over as head coach after six consecutive losing seasons. In his first two seasons in Orlando, the Magic made playoff appearances before being eliminated in the first round on both occasions.
Orlando's split with Clifford comes just a day after the Trail Blazers parted ways with head coach Terry Stotts. Brad Stevens was promoted to President of the Celtics on June 2 leaving Boston with a head coach vacancy.
More NBA Coverage: