Red Bull has terminated its contract with Juri Vips after he used a racial slur during an online gaming session.

Vips was streaming a game on Twitch alongside other drivers, including fellow Red Bull junior Liam Lawson, when he used the term last week. Red Bull immediately moved to suspend the Estonian, and after the team launched an internal investigation it has now dropped Vips with immediate effect.

“Following its investigation into an online incident involving Juri Vips, Oracle Red Bull Racing has terminated Juri’s contract as its test and reserve driver,” the team said in a statement. “The team does not condone any form of racism.”

The announcement comes after widespread condemnation of Nelson Piquet for using a race-related derogatory term when referencing Lewis Hamilton during a Brazilian podcast, with Red Bull declining to issue a statement on Piquet’s comments – the father of Max Verstappen’s girlfriend Kelly – while it worked through legal processes relating to Vips.

Vips has also been removed from the Red Bull junior program, although there has been confirmation yet regarding his future in Formula 2, where he drives for Hitech and is due to race this weekend at Silverstone.