Chief Minister Akhilesh Yadav, however, would continue as the party's state president, SP spokesman Rajendra Chowdhury said here.
"The state unit of the party and 15 cells associated with it have been dissolved on the directions of SP supremo Mulayam Singh Yadav," he said, adding, all presidents and office bearers of the 15 cells have been removed.
The state ruling party was reduced to five seats out of 80 in the Lok Sabha elections in Uttar Pradesh as compared to 23 seats in 2009, while BJP and its ally Apna Dal clinched 73. Congress won only two seats.
The party has been reviewing its performance since May 16, when the Lok Sabha results were declared.
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Both Mulayam and Akhilesh had held meetings with defeated candidates and district presidents separately and 36 leaders, having status of minister of state in the SP government, were sacked from the party on May 20.
During meetings, the party leaders had complained about groupism in the party and non-cooperation by ministers and legislators during election campaign.