The decision was made after Carano made social media posts mocking the Holocaust by comparing the "challenges" faced by conservative supporters in the USA to the fate of millions of people murdered by fascists in the Second World War. Carano quickly seemed to realise the error of her post by deleting the material, but too late.
Carano had faced previous criticism for her support for unsubstantiated conspiracy theories and social media posts mocking minorities, but had Disney's support after post some apologies and clarifications. However, the latest incident seems to be the straw that broke the camel's back.
Carano rose to fame as a mixed martial artist in the mid and late 2000s. She started acting in 2008, with video and voice appearances as Natasha in the video game Red Alert 3, and gained international fame for her performances in Fast & Furious 6 (2013) and Deadpool (2016). She starred in seven episodes of The Mandalorian and was reportedly being considered for return appearances in the show and possibly a larger role in the in-development spin-off, Rangers of the New Republic. Those projects will now continue without her involvement.