"We will now focus our attentions on getting the right manager to help the team push up the league in the short term and make us competitive for a return to the Premier League in the long term.
"Brian has put in an immense amount of work as manager and he should be remembered for some genuine achievements on the pitch and for stabilising Sheffield Wednesday in the Championship."
The Wednesday chairman, who has ambitious plans for the club, has already made it clear he will take his time in appointing a new manager.
"We will not rush into the next permanent appointment as this will be a key appointment in terms of determining the long-term future of our club," he said.
Laws was in charge for 154 matches, winning 52, drawing 42 and lost 60.
He sounded downbeat after Saturday's defeat at Leicester, saying: "Our supporters don't deserve what they saw in the first half, our defence was all over the place.
"We have to believe we can turn this round, and I believe that we can, because the hole we are in is getting deeper."
Laws becomes the 19th Football League manager to either lose or quit his managerial position this season.
There have been five managerial changes in the Championship, with Simon Davey no longer in charge at Barnsley, Gareth Southgate sacked at Middlesbrough, Darren Ferguson out at Peterborough and Paul Strurrock relieved of his duties at Plymouth in addition to Laws.
This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.