In two-and-a-half years at the helm, Vaughn compiled a record of 58-158, with the Magic winning less than a third of the games they played during his tenure as coach.
"Jacque has been a trusted friend and colleague," Magic General Manager Rob Hennigan said in a statement. "We thank him immensely for his contributions and sacrifices in bringing our team to this point, and we greatly appreciate his unwavering commitment to our organization."
Vaughn, a Los Angeles native who spent 11 seasons in the league as a player, will be replaced by assistant coach James Borrego. Borrego will lead the team when the Lakers visit Orlando on Friday night.
Rumors that Vaughn's job was in peril have circulated for weeks, as the Magic continue to flounder in the NBA's weak Eastern Conference. The Magic were in contention for the conference's final playoff spot early in the season, but the team has lost 16 of its last 18 games, a monthlong slide that has included woeful defeats at the hands of the Lakers and New York Knicks, owners of two of the league's worst records.
The team has been in a tailspin since 2012, when an ugly internal feud with superstar center Dwight Howard ended with the team trading him to the Lakers.
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