A Bremen statement noted the decision followed "intense discussions" after the 1-1 draw with Gladbach, which was the tenth Bundesliga clash in a row without a win for Werder.
Clemens Fritz, the club's managing director for sport, said: “It was a tough decision, but we are no longer convinced of the fact that Horst was the person to spark the team’s turnaround following this long run without victory. This realisation was a bitter pill to swallow, since we truly value Horst; however, this is the result reached after analysis of our sporting situation and recent discussions."
Watch: Bremen draw with Gladbach in Steffen's last game in charge
