The Australian radio and television personality, who launched the new series with Jackie O earlier this week, branded News.com.au's Alison Stephenson a "fat bitter thing", a "fat slag" and a "little troll". He also threatened to "hunt [her] down".
Sandilands' radio sponsors Holden and The Good Guys have now pulled their financial support from his show.
Holden published a statement on their website saying: "Recent comments made on the Kyle and Jackie O Show do not in any way reflect the views or opinions of Holden and we are very disappointed to hear Kyle's personal attack on a journalist. We have taken action to withdraw our sponsorship of the programme, effective immediately."
Shortly afterwards, The Good Guys posted on their Twitter page: "The Good Guys does not condone the recent actions of Kyle Sandilands and has withdrawn breakfast sponsorship of The Kyle and Jackie O Show."
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The star defended his actions on the radio today, saying: "We live in a country of free speech. You're allowed to say what you want and so am I. How can people turn this into a female thing? It's pathetic. 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."
"I went over the top because I thought it was a personal attack on me. I never, ever, dish out first. I only ever retaliate to someone else's crazy allegations. And the call that I only ever attack female journalists is not true. I'll attack any journalist that attacks me."
Jackie O backed up her on-air partner, saying: "I know for a fact that you treat women with nothing but the most respect. Your biggest fault is you don't like anyone criticising you because then you fight back."
Earlier this year, Sandilands caused controversy by launching a verbal tirade aimed at supermodel Megan Gale.