With such a glorious history of success and silverware, expectations are bound to be high at Anfield, and with the club's recent run of poor results, it was clearly the end of the road for Roy Hodgson. We compare the out-going and in-coming manager's records at the club against previous managers and Anfield, and see how they compare.
Tenure: 30 May 1985- 21 February 1991, 8 January 2011- Current
Record: 187 wins, 78 draws, 42 losses
Honours: 3 Division One championships, 2 FA Cups, 4 Charity Shields
For most Liverpool fans, Kenny Dalglish's time as manager would mark the end of the golden era for their club, as the Scot's tenure marked the last time the club won the Division One title (now known as the Premier League).
Under Dalglish, who began his tenure as Liverpool boss as a player-manager, the club was famous for the quality of their attacking play, and with players like Ian Rush, John Aldridge and Peter Beardsley on the payroll during his time, fans were enthralled by his 4-3-3 that brought more silverware to the club.
Liverpool were so dominant during Dalglish's time as manager that they were the only English club who would consistently qualified for a European competition in 1985-1990, if not for a ban on the club from Europe after the Heysel tragedy that killed 39 people after Liverpool fans broke down a dividing fence and charged Juventus supporters in 1985.
Dalglish broke Anfield hearts when he handed in his resignation as manager on 22 February 1991, halfway through a two-horse race with Arsenal for the League title.
However, he has since returned to the top job at Anfield, albeit on a caretaker basis.
The 59-year-old put his name forward for the permanent job when Rafa Benitez left but was overlooked by the previous regime.
He will now see this as his chance to get the job for good after the end of the 2010-11 season.
Tenure: 1 July 2010- 8 January 2011
Record: 13 Wins, 8 Draws, 9 Losses
The Englishman took over at Anfield in arguably one of the most turmoil-filled periods in the club's history. Hodgson was riding on a high at Fulham right before taking the top job at Liverpool, winning the 2010 League Managers Association award, but has since struggled to win over the fans at the club.
Unfortunately for Hodgson, his buys of Paul Konchesky, Joe Cole, Milan Jovanovic, Brad Jones, Danny Wilson, Raul Meireles and Fabio Aurelio have failed to sparkle since their arrival, and it did not help that following a dismal 1-0 loss to Wolves, the manager lashed out at a perceived lack of support from Liverpool fans, and had to backtrack with an apology. The damage was done, however, and with crowd attendances at Anfield falling, the new owners of the Merseyside club, Fenway Sports Group, were forced to make a managerial change sooner than later to prevent further fan unrest.
Hodgson even gave an interview to the club's television channel previewing his sides FA Cup clash against Manchester United, but less than 24 hours after that was aired he had been relieved of his duties.
Although the club statement said the 63-year-old's departure was by mutual consent there is no doubt the club's American owners pulled the trigger - especially as less than a fortnight ago Hodgson insisted he had no intention of resigning.
Tenure 16 June 2004- 3 June 2010
Record: 194 wins, 77 Draws, 79 Losses
Honours: 1 European Cup, 1 FA Cup, 1 European Super Cup, 1 Community Shield
Liverpool fans have bitter-sweet memories of the Spaniard's tenure at Anfield. Although Benitez masterminded a famous come-from-behind win over AC Milan in the 2005 UEFA Champions League final, the manager was also infamous for several expensive transfer failures, most notably Alberto Aquilani for £17 million, after letting Xabi Alonso go to Real Madrid in the same summer of 2009.
Despite his best efforts, Benitez could take Liverpool no closer than second in the Barclays Premier League in the 2008-09 season, and after the 2009-10 campaign, when they finished a dismal seventh in the competition, the Spaniard's fate was sealed, and he was forced out after one word too many about a lack of transfer budget provided by the club's previous American owners, George Gillet and Tom Hicks.
Tenure: 16 July 1998- 24 May 2004
Record: 165 wins, 81 draws, 79 Losses
Honours: 2 Football League Cups, 1 FA Cup, 1 UEFA Cup, 1 European Super Cup, 1 Community Shield
Many supporters at Anfield still have much affection for their French ex-manager, who endured a heart attack - allegedly from the stresses of the job - and came back for more after a quick recovery.
Initially drafted into the club to co-manage the squad with Roy Evans, the arrangement didn't last for long, and in November 1998 Houllier took over sole responsibility as manager.
His tenure will be remembered for a trophy laden 2000-2001 season, where his squad, comprising of Anfield legends like Michael Owen, Robbie Fowler and Steven Gerrard, won the the FA Cup, League Cup and UEFA Cup in 2000, followed by the Charity Shield and European Super Cup later in 2001.
However, Houllier's conservative and defensive tactics were often derided by Liverpool fans expecting the same panache and skill displayed at Manchester United and Arsenal, and in 2004 he was forced out after finishing 30 points behind an unbeaten Arsenal in the Premier League.
Tenure: 31 January 1994- 12 November 1998
Record: 123 wins, 63 draws, 58 Losses
Honours: 1 Football League Cup
The Englishman had been on the club's pay roll for some 30 years, having been a bit-part player under the legendary Bill Shankly before becoming a coach at Anfield.
However, his experience in all matters Liverpool, a result of his long time at the club, was not enough to bring silverware to the club, as they won a paltry trophy during his time- the Football League Cup in the 1994-95 season.
As time passed, confidence from the fans and the boardroom had eroded in Evans, and when he was forced into a co-management position with Gerard Houllier, Evans decided to jump before he was pushed, and quit in November 1998.
Tenure: 16 April 1991- 28 January 1994
Record: 65 wins, 47 draws, 45 losses
Honours: 1 FA Cup
It all started so well for Souness, who won the FA Cup in his first full season at the club he used to captain during his playing career.
But the Scot ruffled too many feathers in trying to shake things up at Anfield.
He sold several good players such as Ray Houghton, and Steve Staunton and splashed the cash on Paul Stewart, Torben Piechnik and Istvan Kozma, none of which were particularly successful at Anfield.
One of his more curious transfers was Dean Saunders, who cost a British transfer record of £2.9million from Derby County in the summer of 1991.
Initially a success alongside fellow Welshman Ian Rush up front, Saunders was surprisingly sold onto Aston Villa for £2.5million, making a loss of £400,000 in less than a season.
What really did burn his bridges with the Anfield supporters, though, was the fact that Souness, who had suffered from a heart condition in March 1992, sold his story to the Sun. The tabloid was regarded poorly by Merseysiders as a result of their insensitive reporting of the Hillsborough disaster, and fans were incensed that a legend like Souness would ignore previous history, and do as he did.
A combination of poor results, as well as fan anger at the manager, meant that Souness was removed after a 1-0 loss to Bristol City.
Tenure: 22 February 1991- 15 April 1991
Record: 4 wins, 1 draw, 5 losses
When Kenny Dalglish resigned as manager in 1991, Moran was installed as a caretaker manager , a role he occupied for only ten games. He had placed on record an unwillingness to take the job on full-time and summarily stood down when Graeme Souness was duly appointed as Dalglish's successor.
Tenure: 1 July 1983- 28 May 1985
Record: 70 wins, 37 draws, 34 losses
Honours: 1 Division One championship, 1 European Cup, 1 Football League Cup
Joe Fagen was one of the oldest managers to take the reins of the club when he did so at age 62 in 1983. His reign is remembered at Anfield fondly, as Fagen became the first manager to have completed the treble of European Cup, League Cup, and the First Division title in English football history.
His time was also remembered as the dawn of legends like Ian Rush and Steve Nicol, who began their Liverpool histories under his charge, but sadly also marked by the Haysel tragedy, which left Fagan broken-hearted, and the Englishman quit the job soon after.
Tenure: 26 August 1974- July 1983
Record: 307 wins, 132 draws, 96 losses
Honours: 6 Division One championships, 5 Charity Shields, 3 Football League Cups, 3 European Cups, 1 European Super Cup, 1 UEFA Cup
Bob Paisley continued the winning tradition left behind by Bill Shankly when he took over from the Anfield legend, moving up from the assistant manager position after the Scot finally stepped down.
Paisley was manager of Liverpool from 1974 until 1983, and during those nine years he became one of the most successful managers ever to take charge of an English club, with only one barren season in 1974-1975 when he first took over.
The Englishman oversaw the bringing through of club legends Kenny Dalglish and Graeme Souness, who would both later also become managers at Liverpool, as well as Ian Rush and Alan Hansen.
Paisley retired in 1983 after spending 44 unbroken years at the club.
Tenure: 1 December 1959- 12 July 1974
Record: 407 wins, 198 draws, 178 losses
Record: 3 Division One championships, 2 Charity Shields, 1 UEFA Cup
Bill Shankly is the standard against which all Liverpool managers are compared - and what a high standard the Scot set in his time at Anfield!
The wily tactician transformed Liverpool into a powerhouse that dominated English football for over two decades, uttering the famous lines about football being more important than life or death.
He had actually failed at a previous interview for the top job at Liverpool in 1951, and joined Grimsby Town to bide his time until finally succeeding in landing the position in 1959.
When Shankly took over, Liverpool's training ground at Melwood was in a poor state of affairs, but the Scot turned this into a strength, by arranging for the players to instead arrive at Anfield, and then bus them over to Melwood, creating team camaraderie. He also introduced fitness training, including diet assessment, and skills training including using an artificial goal painted on a convenient wall, split into eight sections which he would demand the players hit each time.
For playing practice, Shankly introduced five-a-side games, and after training, the team would all bus back to Anfield together to shower, change and eat a communal meal. This way Shankly ensured all his players had warmed down correctly and he would keep his players free from injury, an approach which was revolutionary in his time.
In 1974, Shankly retired despite much pleading from Liverpool supporters, as he wanted to spend more time with his wife Ness and their family, and returned to sit with supporters in the Kop at Anfield despite his revered status at the club.