The NHL team on Friday announced the firing of Dineen and his assistants Gord Murphy and Craig Ramsay, just hours after the Panthers dropped a 4-1 decision to Boston on Thursday night.
“After 16 games it was clear that our team needed a change in philosophy and direction,” Florida general manager Dale Tallon said in a statement released by the Panthers.
“We have not met the expectations that we set forth at training camp and it is my responsibility to make the necessary changes to ensure that our club performs at its maximum potential.”
Peter Horachek has been named interim head coach, moving up from his position as bench boss of the team's American Hockey League affiliate in San Antonio.
The Panthers also have hired former NHL players, Brian Skrudland and John Madden, both of whom played for the Panthers, as assistant coaches. Skrudland played four seasons in Florida in the 1990s, while fellow centre Madden appeared in 31 games with Florida in the 2011-12 campaign.
Goalie coach Robb Tallas, video coach Jason Cipolla and conditioning coach Craig Slaunwhite will remain on the Panthers' staff.
Dineen compiled a 56-62-28 record in parts of three seasons, leading the Panthers to the 2012 Southeast Division title.
He is the second NHL head coach to lose his job this season following Peter Laviolette’s departure in Philadelphia after the Flyers lost three in a row to start the season.