The Dutchman only joined the Russian club five months ago but club president and Chechen leader, Ramzan Kadyrov, has sacked him for poor results and enjoying the nightlife too much.
"We must acknowledge that Gullit has not satisfied the expectations of the club's board," read a statement on the club's official website.
"Gullit's actions at the helm of the team during this half year shows that he has no basic understanding of his players or his line-up.
"Gullit has to know he has not been invited to spend his time at nightclubs, but rather to work at the football club and, moreover, get a result.
"Yes, we do not have drug abuse or indecent nightlife institutions, which are aplenty in Holland and Europe. But in Grozny there are all the conditions for people with a healthy lifestyle."