Ryan Saunders, 32, has been named interim head coach.
Minnesota has now parted ways with Thibodeau and Jimmy Butler over the last two months. Thibodeau and Minnesota's front office eventually sent him to the 76ers in mid-November in exchange for a package centered around Robert Covington and Dario Saric.
Hoiberg had an average coaching record of 115-155 across four years in the helm of the Bulls.
Assistant coach Ryan Saunders will assume the role of the interim head coach for the remainder of the 2018-19 season. And everyone involved - players, coaches and staff - know that.
National Basketball Association to investigate Cavaliers' signing of Patrick McCaw
The Cavaliers signed McCaw to a non-guaranteed two-year, $6-million offer sheet December 28 that went unmatched by Golden State. Some have speculated the Cavaliers made the moves to spite the franchise that beat them in three of the past four NBA Finals.
Current ESPN analyst and former five-time All-Star point guard Chauncey Billups has also been discussed internally as a candidate for both positions, sources told Wojnarowski.
Hoiberg has been a rumored target for UCLA's head-coaching job. Though the Timberwolves ended their 13-year absence from the playoffs last spring, they've by and large underachieved since Thibodeau, who is 60, took over.
Continuity is always hard to replace, and many National Basketball Association teams find it hard to create immediate success following an arrival of a new head coach.
Obviously, young big man Karl Anthony-Towns should be an untouchable for any trade negotiations, but don't be surprised if the Wolves also make some deals come the February trade deadline.
Thibodeau was picked for his experience with winning teams and his acumen as a defensive whiz, hired to use his demanding, detailed style to bring out the best in franchise cornerstones Wiggins and Towns. But even if they make it to the April games, it's hard to imagine them making any noise against the West's championship-contending teams.