"Roseanne's Twitter statement is abhorrent, repugnant and inconsistent with our values, and we have decided to cancel her show," ABC Entertainment president Channing Dungey said in a statement.
Disney CEO Bob Iger added on Twitter that "There was only one thing to do here, and that was the right thing."
The cancellation stunned Hollywood. The revival of "Roseanne" premiered to huge ratings just three months ago. Pre-production was already underway on a second season, which was scheduled for Tuesdays at 8 p.m. this fall.
Barr's talent agency, ICM Partners, dropped her following her tweets.
"What she wrote is antithetical to our core values, both as individuals and as an agency," the agency said in a statement. "Consequently, we have notified her that we will not represent her. Effective immediately, Roseanne Barr is no longer a client."
Barr went on A tweetstorm Tuesday morning, attacking Valerie Jarrett, Chelsea Clinton and George Soros.
ABC went silent for several hours while deciding what to do. By late morning on the West Coast, executives had decided to boot the reboot.
When asked why ABC ultimately decided to cancel the show, a Disney source said, "It's a question of right and wrong. And it's a question of our company's values."
Reactions to the decision were overwhelming and largely positive.
Congressman John Lewis thanked ABC, saying that "There is not any room in our society for racism or bigotry."
"Some things apparently are more important than money," even for a network like ABC, "and that's heartening," CNN's Van Jones said on the air.