Jim Tracy and the Dodgers have come to a "mutual agreement" - Tracy wanted to return, and his current deal ran through next year. However, Tracy and GM Paul DePodesta had "philosophical differences" and it was evidently made clear that Tracy was not going to get an extension and that he would be a lame duck on a short leash if he did return.
The Dodgers were the defending division champs, and came charging out of the gate this year, winning 12 of their first 14 games. The team was decimated by injuries to most of the lineup after that - the entire outfield was out at one point, three of the four infielders at another, and Eric Gagne missed most of the season.
Tracy, in my opinion, didn't help matters much by sticking with Cesar Izturis as his leadoff hitter. Izturis got off to a very fine start, hitting .314 and scoring 33 runs over the first two months. Alas, from June 1 onward, he was astonishingly bad - he batted just .173 the rest of the way, with a .211 On-Base percentage, and scored the grand total of 15 runs before injuries cut short in season in late August.
You may also be unimpressed by the way he buried Hee-Seop Choi on his bench, giving him just 102 at bats after the All-Star Break...