The Australian radio personality, who presents a show on 2DayFM alongside Jackie O, was yesterday dumped by Holden and The Good Guys after he threatened to "hunt down" News.com.au reporter Alison Stephenson, branding her a "fat slag" for criticising his new TV series A Night with the Stars.
More advertisers such as Telstra, Vodafone, Blackmores, Qantas, Mitsubishi, Fantastic Furniture and the Federal Government have now pulled their adverts from the station, costing Southern Cross Austereo bosses an estimated $4 million.
Southern Cross chief executive Rhys Holleran has now revealed that he is "addressing issues" with Sandilands, telling the Herald Sun: "We recognise that his opinions have caused offence, and sincerely apologise."
Stars such as Charlotte Dawson and Andrew O'Keefe have now shown their support for an 4000-signature online petition demanding that Sandilands is reprimanded for his on-air comments.
O'Keefe said: "The way that we talk about people really defines the way we think about people. I know Kyle has the capacity to be a much better man than that."
Sandilands defended himself yesterday, saying: "If you took personal offence to it, Ali, I'm sorry to you, but maybe you should think again before you start going at certain people. We live in a country of free speech, you're allowed to say what you want - and so am I."
The star has previously caused controversy for calling supermodel Megan Gale a "phoney" live on air.
> Kyle Sandilands blasts "s**t cable host" Rove McManus
> Kyle Sandilands slammed for 'racist slurs'
Listen to some of Kyle Sandilands' rant as part of a news report below: