The Spaniard lasted just six-and-a-half months and 22 games in the job, but leaves following a poor run of form which had seen protests against his position grow amongst supporters.
Saturday's defeat to relegation-threatened Norwich was Everton's ninth in their last 13 Premier League games, with the Toffees winning just once in that time.
Everton fans unveiled banners calling for Benitez to be sacked during that match, and the club have now parted company with the former Liverpool boss.
"Everton Football Club can confirm the departure of Rafael Benitez as first team manager," read a statement on the club's official website.
"Benitez, who joined Everton in June 2021, has left the club with immediate effect. An update on a permanent replacement will be made in due course."
Benitez won just seven of his 22 games in charge of Everton, losing 10, and he leaves the club with them sitting 15th in the table, just six points clear of the relegation zone.