The 56-year-old joins the list of coaching casualties after the Africa Cup of Nations finals in the Ivory Coast, where his side was the first to be eliminated after losing all their Group A games. Guinea Bissau have not won an AFCON match in 12 attempts.
The home-born coach became a national hero in the former Portuguese colony for engineering four successive qualifications for the Cup of Nations finals after decades of being one of the continent's whipping boys.
Cande had been in charge since 2016 following a previous stint as coach of the national team.
Already departed after the Cup of Nations tournament in Ivory Coast are Djamel Belmadi (Algeria), Rui Vitoria (Egypt), Tom Saintfiet (Gambia), Chris Hughton (Ghana), Jean-Louis Gasset (Ivory Coast), Adel Amrouche (Tanzania) and Jalel Kadri (Tunisia).