After an exceptional run to the semi-finals of Euro 2020, where they lost to England, Denmark scraped through to the Euro 2024 knockout rounds as Group C runners-up behind the Three Lions.
The Danes failed to win any of their three group matches, though, playing out successive stalemates with Serbia, England and Slovenia, only pipping the latter to second place on account of a slightly better disciplinary record.
Denmark's runners-up finish earned them a daunting last-16 date with hosts Germany, which was briefly suspended due to a thunderstorm in Dortmund, but Hjulmand's side eventually succumbed to a 2-0 defeat thanks to goals from Kai Havertz and Jamal Musiala.
The Scandinavians' exit was clouded in controversy, though, as many felt that Joachim Andersen was harshly penalised for the handball that led to Havertz's penalty, and the Crystal Palace defender also had a goal disallowed at the Signal Iduna Park.
Hjulmand: 'Denmark need new ideas for 2026 World Cup'
Following Denmark's disappointing winless campaign at Euro 2024, Hjulmand announced on Friday that he had stood down as manager, claiming that the 1992 European champions are in need of fresh ideas before the 2026 World Cup.
"It has been an incredible honor and privilege to be allowed to coach our national team for four years. I have given everything I had to achieve success and to get the people to rally around the team," Hjulmand told the official Denmark website.
"Representing one's country is absolutely the greatest thing I can imagine, and I will look back on a fantastic time with great support for our dream. When I look two years ahead to the World Cup, I can feel that it will be best for the team that a new face and new ideas come in, who can write a new big chapter for this amazing team, and therefore it is best, that someone else leads the team forward. It's not about me. It's about what's best for the team.
"We dreamed of bringing the children and young people closer to the national teams and, in general, making the national teams more relevant to the population. We have not succeeded in everything, but we have come a long way and have made the Danes dream big. I want to say a heartfelt thank you for the colossal support I've been met with everywhere I've come.
"The community with Danes of all ages and all parts of the country is something I will always remember and value. A special thank you also to everyone at DBU for the trust. Thanks to our amazing staff and a very heartfelt thank you to all the players I have worked with. It has been an honor."
Hjulmand took over as Denmark head coach in August 2020 as the successor to Age Hareide, who was originally set to lead the Red and Whites to Euro 2020 before the coronavirus pandemic pushed the tournament back a year.
After masterminding the Danes' inspirational run to the semi-finals of that continental tournament, the 52-year-old led his nation to the 2022 World Cup Finals, although they underwhelmed in Qatar and exited at the group stage with no wins to their name.
Prior to the most recent World Cup, Hjulmand oversaw a pair of Nations League upsets against France as Denmark finished second in League A Group 1, just one point shy of winners Croatia.
The former Mainz 05 manager leaves with a record of 33 wins, eight draws and 14 defeats from 55 matches at the helm, and his 60% win rate is the highest of any Denmark coach to take charge of more than 50 games.
Who will replace Hjulmand as Denmark manager?
Hjulmand's assistant Morten Wieghorst will step into the role of caretaker manager for the remainder of the calendar year, taking charge of six Nations League fixtures for the Red and Whites between September and November.
Denmark commence League A Group 4 with a clash against Switzerland on September 5, three days before reuniting with Euro 2024 group foes Serbia in Copenhagen.