"I would like to thank Mike for the hard work and dedication he provided behind the bench for the Minnesota Wild organization and wish him the best in the future," general manager Chuck Fletcher said in a statement.
The dismissal comes following a 4-2 loss earlier Saturday against the Boston Bruins, Minnesota's eighth consecutive defeat.
John Torchetti, the head coach of the AHL's Iowa Wild, has been named Yeo's interim replacement.
The Wild have gone 1-11-2 in their last 14 games, falling to sixth in the Central Division and three points back of the Nashville Predators for a wild-card spot.
The Wild made the playoffs three years in a row under Yeo dating back to last season, but never made it past the second round during his five-year tenure.
Following Saturday's loss, Yeo clearly understood the predicament he was in.
"I'm a realist," Yeo said. "You can't lose every game and expect to think that there's not going to be changes. I'm operating under the assumption that I'll be the coach tomorrow, and I know what I'm going to do and it's going to be something different from what we've done."
The Wild travel to Vancouver to face the Canucks on Monday.