MSNBC said Tuesday that the decision was a "mutual parting and we wish Alec all the best."
"Up Late with Alec Baldwin" was on air for only five episodes. The first three attracted a little more than a half million viewers, but the last two dipped under 400,000 viewers.
The former "30 Rock" star had lost his cool in the New York encounter. He later tweeted that he did not realize the profane phrase he used was offensive to gays and apologized.
Baldwin later said that the incident took place as he tried to protect his family. Following the encounter, MSNBC suspended Baldwin for two weeks. His suspension was due to end this Friday.
The street encounter came during the same week a Canadian actress was convicted in New York of stalking the actor with calls, emails and visits over a period of two years.
Genevieve Sabourin was sentenced to six months in jail in addition to a month she's already serving for her courtroom outbursts.
The Associated Press contributed to this report.