Trump praised her in a post on Truth Social and said she would be "transitioning" to a role in the private sector. BBC reported.
Bondi's time leading the justice department was often overshadowed by its handling of the release of files relating to Jeffrey Epstein and its investigation into the convicted sex offender.
She is the second Trump administration official in recent weeks to be cut from her post, after Kristi Noem was ousted as homeland security chief in March. Bondi will be replaced by her former deputy, Todd Blanche.
Bondi said she would be "working tirelessly" to transfer her work to Blanche, adding that the job had "been the honour" of a lifetime.
She added that in her new private sector position - which she did not identify - she would "continue fighting for President Trump and this administration".
The announcement comes less than two months after a combative congressional hearing in which Bondi was peppered with questions from lawmakers - at times descending into shouting matches in which she called one Democrat a "washed up loser".
As recently as Thursday morning, Trump was defending Bondi, saying: "She is a wonderful person and she is doing a good job."
But hours later, Trump confirmed her departure on Truth Social, saying that her new private sector role would be "announced at a date in the near future".
