The video, showing two female university students - one of whom is a Blue Bulls cheerleader - using the K-word, went viral on social media after it was shared on a students' WhatsApp group by mistake.
The Blue Bulls company posted a statement on its Twitter page confirming that the student had been axed as a cheerleader.
“The Blue Bulls Company would like to confirm that it has requested the immediate release of the student from the Vodacom Bulls Babes squad, following the surfacing of a video involving her making racial slurs.
“The individuals who make up the Vodacom Bulls Babes are managed by an external consultant, which means that she was neither employed nor directly contracted by the Blue Blues Rugby Company.
“We, together with the consultant who manages the Vodacom Bulls Babes, would like to categorically state that we will not condone any form of racial abuse.”
At the weekend, the Cyril Ramaphosa Education Trust also withdrew bursary support for the student.
“The bursary programme has prided itself in its non-racial, non-discriminatory programme,” the trust said.
The university on Friday suspended the two girls in the video, saying they would face a disciplinary hearing.