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The 37-year-old world champion, who is running in May elections for a seat in the Philippines' Senate, told a local broadcaster that gay people were "worse than animals." "It's just common sense. " said Pacquiao, who already has a House of Representatives seat.
He subsequently posted an apology to You Tube, saying he was sorry for hurt he had caused, but also reiterated his opposition to same-sex marriage, which is not permitted in the staunchly Roman Catholic country.
Pacquiao had been with Nike for eight years, wearing shorts in the ring with the Nike swoosh.
Pacquiao's promoter-manager Bob Arum told CNBC that Nike did the right thing.
"In the Philippines where he is running for senate, most of the people are against same-sex marriage," Arum said.
He explained that Pacquiao was a recent convert to evangelical Christianity.
The company most recently severed its relationships with running backs Ray Rice and Adrian Peterson, sprinter Oscar Pistorious and cyclist Lance Armstrong.