The Magpies have won only one point in six Barclays Premiership matches and are only six points above the relegation zone.
A statement on the club's website, nufc.co.uk, said: "Newcastle United today announced that the employment of Graeme Souness has been terminated with immediate effect. An announcement will be made shortly regarding transitional arrangements pending the appointment of a new team manager."
We all know about the injuries, but the story goes far far deeper than that. How many "good" performances have we seen this season? Be honest with yourself ... how many? How many games have we LOOKED like a team? The first half against Manchester City at St James' Park and that is about it!
There is no tactics, no motivation, no passion ... no nothing!
My opinion is in the article below this "Does Anyone Know A Hit-Man" written before Souness was sacked. Give us YOUR opinion on our message board.
Ex-Newcastle defender Glenn Roeder and Alan Shearer will take over the team for the coming games. Obviously Shepherd is not in any position to raise the cash to "pay off" a current club manager.
Roeder joined Newcastle in 1983 from Queens Park Rangers, became club skipper, before leaving for Watford in 1989.
Obviously Freddy Shepherd is looking to Shearer as the next Newcastle manager, and he has said that many times. But the timing is interesting. Souness arrived hours after the transfer window closed 18 months ago, and guess what?