The Giants, second from bottom in the First Utility Super League with just four wins from 18 matches this season, have also stood down Anderson’s assistant Kieron Purtill, who was due to leave at the end of the season to join Leigh.
The changes will take immediate effect, with head of youth Andy Kelly placed in charge of the team for Friday’s game against Salford at the AJ Bell Stadium.
Huddersfield chairman Ken Davy said: “It is with great sadness that we make this change.
“It is usual in statements such as these to end with the club will be making no further comment, but I believe that Paul in particular deserves more than that.
“He has been at the Giants for nearly 10 years now with almost four as head coach and has been at the heart of our rise to the top end of the table. I know he has been as disappointed as anyone regarding our performances and has strived night and day to improve our results.
“Paul is an excellent coach and I have no doubt that he will soon be back in the game and both he and Kieron are immensely respected for the work they have done at the club.”