Kramer, 50, oversaw just 13 games at the Schalke helm after being appointed at the Bundesliga 2 champions ahead of the season. However, he won just two of those (5-0 vs. Bremer SV in the DFB Cup first round and 3-1 vs. Bochum in the league).
His dismissal comes the morning after the Royal Blues were knocked out of the cup with a heavy 5-1 loss at Hoffenheim, which followed a 3-0 home defeat to the same opponent in the Bundesliga last weekend.
"The way we've played, especially in the away games at Leverkusen and Hoffenheim, were not worthy of Schalke," said board member Peter Knäbel. "Our analysis points at the individual of the head coach. We'll have to improve significantly in all areas to achieve our big goal of remaining in the Bundesliga."
Die Knappen returned to the top flight as Bundesliga 2 champions but have just six points after 10 matchdays, leaving them second-bottom but just two points adrift of safety. The only time in the last 30 years they've been worse off at this stage was in 2020/21 when they had only three points and would be relegated in last place.
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Sporting director Rouven Schröder added in the club statement: "We set ourselves the goal after promotion of remaining in the Bundesliga. Until recently, we were convinced we could turn things around with the current setup. But from our perspective, the time has now come to make changes in personnel. We have to pick up points in the five league games before the long World Cup break to prepare our club in the best possible way for the second half of the season."
Schalke are yet to confirm Kramer's successor but face a crucial fixture at the bottom on Sunday away at Hertha Berlin. They close out the year against Freiburg (h), Werder Bremen (a), Mainz (h) and Bayern Munich (a).
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