The Australian 2DayFM breakfast presenter, whose show with Jackie O was deserted by numerous sponsors last year, was dumped by new advertiser weight loss company Jenny Craig following last year's rant, in which the he threatened to "hunt down" a journalist who had reported a poor viewer response to his TV show.
Jenny Craig posted a message on Facebook reading: "One thing about Jenny Craig is that we listen. We badly misjudged public perception of Kyle Sandilands.
"We feel sorry we have offended so many people. We have instructed 2DayFM that our advertising is to be discontinued on The Kyle and Jackie O show, and the rest of their schedule immediately."
Jenny Craig stepped in as Sandilands's show's major sponsor after car company Holden dropped all advertising for 2DayFM.
In Sandilands's 2011 rant, he branded News.com.au's Alison Stephenson a "fat bitter thing", a "fat slag" and a "little troll". This followed his verbal attacks against Megan Gale and Rove McManus, plus a controversial racist slur against India live on air.
Sponsors such as Telstra, Harvey Norman, Blackmore, Vodafone and Qantas dumped the star late last year and over 32,000 people signed a petition calling for Austereo to sack Sandilands. It is believed that the boycott could have cost the station up to $8 million (£5.4 million) of revenue.
However, Jackie O insisted yesterday that she and Sandilands are "moving on" from the scandal, saying: "We've put it behind us. I'm looking forward to getting back on air."
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