Sports Minister Simplice-Desire Mamboula announced the measures after the 3-2 defeat by Ivory Coast on 31 December.
Gabon finished bottom of their group in Morocco after earlier losses to Cameroon and Mozambique, performances Mamboula described as "disgraceful".
He said: "Given the Panthers' disgraceful performance at the Africa Cup of Nations, the government has decided to dissolve the coaching staff, suspend the national team until further notice, and exclude players Bruno Ecuele Manga and Pierre-Emerick Aubameyang."
Gabon, whose exit from the tournament was confirmed before the Ivory Coast game, let slip a two-goal lead in Marrakech.
Former Arsenal and Chelsea striker Aubameyang did not play in the final group game after returning to Marseille for treatment on a thigh injury.
He said: "I think the team's problems are much deeper than the individual I am."
Mouyouma was in charge for a little over two years.
It used to be common for African governments to disband national teams after disappointing results, but it has happened less often since Fifa became stricter about government interference.
