"Torino Football Club announces that it has sacked Sinisa Mihajlovic as coach of the first team," the club said in a brief statement.
"Sinisa and his staff are thanked for their commitment and passion shown in these 18 months in Granata."
Torino lost 2-0 in the Cup quarter-finals to defending champions Juventus in the Allianz Stadium on Wednesday night after goals from Douglas Costa and Mario Mandzukic.
Mihajlovic was banished from the sidelines during the game as he protested Manzukic's second-half goal which came after a Sami Khedira challenge on Afriyie Acquah.
The club are sitting tenth in Serie A with just five wins in 19 games this season including six draws in their last eight league games.
The move comes just before the January transfer window with Torino playing Bologna, just below them in Serie A on Saturday, in their last game until January 21, before a two-week break.
Mihajlovic joined Torino in the summer of 2016, having been sacked by AC Milan in April that year.
The 48-year-old previously managed Bologna, Catania, Fiorentina, Sampdoria and the Serbia national team.
Among those touted to replace him in by the Italian media are former Napoli, Inter and Watford coach Walter Mazzarri.
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