Some tweets say "fired", but I bet it was a lot less harsh than that. Probably a mutual thing. Remember, he really didnt want the job... two years in a row. It wouldnt surprise me if he just moved into a different role. He's turned down interviews before because he didnt want to move his family out of new orleans (reportedly).
And I'm fine with that. I want a hungry OC... hell, I want a hungry coaching staff and a hungry team. Probably never gonna have a hungry owner or GM... but i want the rest of the organization 100% bought in.
Pete didnt really do anything "wrong" he just isnt the guy for that position. And I think he knew that and tried to tell them. Lets hope they're listening now and that they make a good decision on his replacememt.