"This decision was not easy for me, and it was one into which I put a great deal of thought," Browns president Mike Holmgren said in a statement. "Although we have made improvements this season, my responsibility is to ensure that we establish a program that will allow this team to compete at a championship level. That will continue to be our goal in everything we do. I want to thank Eric for all of his contributions to the Cleveland Browns, and wish him and his family the best of luck in the future."
Mangini said he believes the Browns are headed in the right direction.
"I have a deep respect for the players that I have coached the past two years and how they have made a profound difference in changing the culture -- a tougher, smarter, more competitive, selfless team that never gave up," Mangini said in the statement. "Our goal was to build a team for long-term success. The core characteristics we were dedicated to, I believe, will help achieve that goal, and have provided a strong identity for this football team and have helped to create a positive foundation upon which the organization can continue to build."
The Browns ended their 2010 season with an embarrassing 41-9 home loss to Pittsburgh on Sunday.
In the locker room afterward, Mangini somberly thanked his players for their effort.
"He told everybody he loved them," said wide receiver Josh Cribbs. "He said just what a head coach is supposed to say. We went out there and played for him throughout the year. We tried to do what he asked us to do. He was appreciative of the opportunity that we gave him."
Although the Browns made some statistical improvements across the board, they failed to build on the momentum created by mid-season upsets of New Orleans and New England. Cleveland staggered to a 2-6 finish, losing at Buffalo and Cincinnati in that stretch -- when the Bills and Bengals had just two wins.
The Browns closed with four straight losses, one year after a season-ending four-game winning streak helped Mangini get another year.
Cleveland was much more competitive this season than last. The Browns had 12 games decided by 10 points or less, but they went just 3-9 in those. And, in a bottom-line business where record means everything, the bottom line isn't good for Mangini.
Holmgren could hire someone or appoint himself as coach.
The 62-year-old, who won a Super Bowl title with Green Bay and guided Seattle to its only title game appearance, has left open the possibility of a return to the sideline. He was hired in December 2009 by owner Randy Lerner to restore Cleveland's franchise, but Holmgren has admitted it has been tough to watch games from the press box.
He's a coach, plain and simple.
Holmgren went 161-111 in 17 seasons as an NFL head coach, making the playoffs 12 times and winning eight division titles.
If Holmgren doesn't take over, he'll have a stellar list of potential candidates to pursue, including Jon Gruden, John Fox and Marty Mornhinweg. All three have ties to Holmgren, who could be enticed back into coaching after seeing rookie quarterback Colt McCoy grow into a possible star.
Information from The Associated Press was used in this report.