The decsion comes after the club's 0-0 stalemate with Luton Town, marking West Brom's eighth game without a win.
In a statement published on their website, West Brom wished Bruce well and thanked him for his time at the club and confirmed Richard Beale will stand-in as interim manager.
“West Bromwich Albion have today parted company with manager Steve Bruce. Backroom staff Steve Agnew, Stephen Clemence and Alex Bruce have also left The Hawthorns," it said.
“The club would like to place on record its thanks to Steve Bruce and his coaching staff for their efforts since arriving in February. U21s coach Richard Beale will oversee first-team affairs on an interim basis, assisted by James Morrison and Gary Walsh. The process of recruiting a new Manager is now under way and an appointment will be confirmed in due course.”
Fans of West Brom made their voices heard online, with some responding to the club's latest full-time result post by venting their frustration.
West Brom have won just one game so far this season, a 5-2 victory over Hull City, who now sit three points above the Baggies.
Bruce took over as manager back in February, when West Brom were sixth in the table. They now sit in 22nd place.
Since then, the club's chances of returning to the Premier League have taken a downturn and fans' frustration was growing by the week.