The Parisians have taken just seven points from five games and currently lie second from bottom in the championship standings.
The dismissal of McKenzie and Dominici comes in the wake of two defeats in five days, with a 30-22 reverse against Biarritz following a 40-35 home defeat to Montauban.
The 40 points conceded during last Wednesday's loss to Montauban was the most Stade had shipped at home in nine years and seemed to spell the end for both men.
Former New South Wales coach McKenzie had only been in charge at Stade for a single season having taken over from Fabien Galthie at the end of the 2007/08 campaign.
Dominici, who was a hero as a player with Stade for more than a decade, had also only been on the club's coaching staff for one season.
"We're at the wrong end of the table but that said two wins and you're in first place," McKenzie told Sky Sports Radio.
"We're not exactly in dire straits but the way the team is organised a lot of it is around bums on seats for the big games and the owner wanted to do something different.
"This is not an unusual in French sport. Often if you're not getting what you want the public execution of the coach is part of the emotional solutions the French subscribe to.
"It's not actually about the coaching. You can't sack the players so you sack the coach and that sends the message, that's my interpretation of it."
The move to sack McKenzie and Dominici leaves the likes of former British & Irish Lion Simon Taylor, fellow Scotland international Hugo Southwell and new signings James Haskell and Tom Palmer without a permanent coach just a month from the start of the 2009/10 Heineken Cup.