Warning: Story contains derogatory and coarse language
"The term Tony used is a derogatory slur to describe little people. Good Karma Brands will not tolerate derogatory language that demeans others or groups of people," the statement said.
Grossi made the comment while the mics were still hot during a discussion about the quarterbacks the Browns missed out on in the draft over the last four years, such as Deshaun Watson and Carson Wentz.
"The dwarfism community has voiced that they prefer to be referred to as dwarfs, little people, people of short stature or having dwarfism, or simply, and most preferably, by their given name," dwarfism support organization Little People of America said in a 2015 statement.
Mayfield is listed at 6-foot-1 by the NFL, an inch shorter than Watson and four inches shorter than Wentz.
Grossi issued an apology on Twitter, saying his comment "was said without malice but also without thought."
Mayfield and Grossi have clashed before. The quarterback walked out of a press conference in October over the reporter posing what Mayfield deemed "the dumbest question you could ask."
Grossi also argued against the Browns selecting Mayfield with the first overall pick in the 2018 draft.