The Merseyside club have collected just 14 points from 15 games thus far, winning only four games.
Silva was appointed as the head coach in May 2018 but left having taken charge of just 60 games with 24 wins.
He became the fourth Premier League manager to lose his job in the last two weeks, after Mauricio Pochettino (Tottenham), Unai Emery (Arsenal) and Quique Sanchez Flores (Watford.)
Everton confirmed the news with a brief statement this evening, which reads:
“Everton Football Club can confirm that manager Marco Silva has left the Club.
— Everton (@Everton) December 5, 2019
Not only was Silva the first Everton manager since Howard Kendall in 1982 to let in five goals to their bitter rivals, but they also dropped to the relegation zone for the first time since1999 after playing a minimum of 15 games.
“I am not the right person to talk about this situation,” Silva told reporters after the derby.
Potential successors are scarce with former manager David Moyes touted as a likely temporary stop-gap.
The 56-year-old Scot earned his top-flight managerial spurs at Everton but has had a chequered career since.
He was fired both by Manchester United and Real Sociedad, and he has hardly at either Sunderland or West Ham.
Silva’s failure represents a blow to owner Farhad Moshiri, who fought long and hard to secure his services.
Everton went after Silva in October 2017 when he was still in charge of Watford, and he was the fourth manager of Moshiri’s spell in charge.