"We unequivocally condemn the statements made by John Galliano which are in total contradiction to the longstanding core values of Christian Dior," Sidney Toledano, Dior's president and chief executive officer, said in a statement issued to Women's Wear Daily.
The move came after a video surfaced online appearing to show the 50-year-old designer making the offensive remarks.
Natalie Portman, the Israeli-born actress who won the Best Actress Oscar Sunday for her work in "Black Swan," also is the face of Miss Dior Cherie perfume. She said she is "deeply shocked and disgusted by the video" and will never work with Galliano again.
"In light of this video, and as an individual who is proud to be Jewish, I will not be associated with Mr. Galliano in any way," Portman said in a statement released to People.com.
"I hope at the very least, these terrible comments remind us to reflect and act upon combating these still-existing prejudices that are the opposite of all that is beautiful," the actress said.
WWD said Dior still plans to show its collection Friday at Italian Fashion week in Milan.