Lauer, 59, is a familiar face to American television viewers as the host of NBC's popular morning news show "Today" for more than 20 years.
He also led the network's coverage of many major news events, from the September 11th attacks to presidential campaigns and the Olympics.
His co-host Savannah Guthrie announced his termination on air as their program began.
"This is a sad morning here at 'Today' and at NBC News," Guthrie said.
Lauer thus joins the ranks of other giants of American film, television and journalism who have fallen amid allegations of sexual misconduct, harassment or assault in a groundswell of outrage that began weeks ago with a flood of charges against movie mogul Harvey Weinstein.
The wave of allegations has reached Capitol Hill, where several lawmakers stand accused of inappropriate behaviour, and nearly every day seems to bring another stunning case involving a well known public figure.
"It represented, after serious review, a clear violation of our company's standards. As a result, we've decided to terminate his employment," Lack wrote.
NBC said it was provided with evidence suggesting this may not have been an isolated incident.
Veteran journalist Katie Couric, who was Lauer's co-host for years, said in 2012 during an interview with the showbiz gossip news outlet TMZ that "Matt pinches me on the ass a lot."
She was responding to the question of what Lauer's most annoying habit was.
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