Bayern Leverkusen has 40 points after 26 games, seven points behind fourth-placed Eintracht Frankfurt and the Champions League qualifying places.
Hannes Wolf, who was in charge of Germany's Under-18 side, will replace Bosz, while former Leverkusen midfielder Peter Hermann has been appointed assistant coach.
'Bayer 04 Leverkusen have reacted to the negative trend of the past few weeks and released head coach Peter Bosz with immediate effect,' the club said in a statement.
'Given the developments on the pitch over recent weeks, we have come to the conclusion we can no longer avoid parting company with Peter Bosz,' sporting managing director Rudi Voller added.
'The 3-0 defeat at Hertha Berlin on Sunday was unfortunately indicative with our team, again and again, falling into the same pattern.
'We have not managed to stop making repetitive mistakes and get back to winning ways.
'After an objective and very open analysis of the sporting situation, we have therefore agreed to make the break-in spite of our great appreciation for Peter Bosz.'
Leverkusen added that Bosz's assistants Hendrie Kruezen and Rob Maas had also left the club.
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