The former Rovers defender lasted just 57 days in his role in charge of the League Championship club after taking over at the end of October.
With Rovers currently sitting in 17th position in the league, just seven points outside of the relegation zone and another eight points adrift of the playoff places, the club's owner, Venky's, has decided to make a change for the second time this season, axing Berg and his technical staff.
The 43-year-old Berg had just 10 games in charge of the club, leading the side to only one victory, a 4-1 win over Peterborough away from home back in November. The club lost six and drew the remaining three, failing to win a game at Ewood Park during his brief tenure after replacing Steve Kean as full-time boss.
"Blackburn Rovers FC has announced the departure of manager Henning Berg, assistant manager Eric Black, first team coach Iain Brunskill and goalkeeping coach Bobby Mimms with immediate effect," Blackburn announced in a statement on the club's official website. "This decision has been taken following a very disappointing sequence of results. The club thanks the four men for their efforts and wishes them every success for the future."
Having lost five of the club's last six games, the Norwegian Berg, who played for Rovers for four years between 1993-97, saw his side lose his final game in charge, a 1-0 result away to Middlesbrough.