In a statement, the board of directors of the Weinstein Company said that the decision had been arrived at "in light of new information about misconduct."
Weinstein had earlier apologized for causing a "lot of pain" to his colleagues.
Weinstein is known as one of the most powerful men in Hollywood.
Along with his wife Georgina Chapman, he co-founded The Weinstein Company in 1979, which churned out top-grossing films such as "Django Unchained."
The company secured its 26th Oscar best picture nomination in 28 years with "Lion."
According to a recent New York Times report, Weinstein sought sexual favors from several young actresses trying to find their way into Hollywood.
They alleged that Weinstein forced them to massage him and watch him naked.
The article also alleges that Weinstein reached settlement deals with at least 8 women.
Allegations have also been made by top actresses, including Ashley Judd and Rose McGowan.
Weinstein responded at first by apologizing for his behavior which "caused a lot of pain" to his colleagues and added that he planned on taking a leave of absence.
However, he later disputed many of the allegations made against him as "patently false."
Lisa Bloom, who quit recently as Weinstein's advisor, also conveyed that he was working on mending his ways.
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