The Reds, who feature Irish stars Niamh Fahey and Leanne Kiernan in their ranks, impressively finished fourth in the Women's Super League last season but sit seventh this term after just four wins in 14 games.
Beard won back-to-back WSL titles with the Reds in 2013 and 2014 and returned for a second spell in charge in May 2021.
In his first season back at the helm, he oversaw promotion back into the WSL.
A club statement said: "We have all experienced some fantastic moments with Matt as manager of LFC Women and we express our gratitude for his significant contribution.
"Our priority was to return this team to where it belongs and we collectively achieved that in 2022 by winning promotion to the WSL.
Assistant manager Amber Whiteley will take interim charge while the club search for a new manager.
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