Trek Central reporting that Star Trek Prodigy has been cancelled and will be removed from Paramount+ in coming days.

https://startrek.website/post/108995

Trek Central reporting that Star Trek Prodigy has been cancelled and will be removed from Paramount+ in coming days. - Star Trek: Website

Confirmed by Deadline, with some added details:

The new season will complete post-production, and the studio will be looking for a new home for Star Trek: Prodigy as season one comes off the service shortly.

The company said that “continues to be invested in growing the Star Trek franchise” with series including Star Trek: Starfleet Academy, movie event Star Trek: Section 31, Star Trek: Strange New Worlds, which returned for its second season June 15 and has been renewed for a third season, animated series Star Trek: Lower Decks, which will return for its fourth season later this year and has also been renewed for a fifth season, the upcoming final season of Star Trek: Discovery as well as Star Trek: Picard.

Update from series writer Aaron J. Waltke:

Obviously, there is not much I can say. Everyone on the cast and crew loves #StarTrekProdigy deeply.

I have noticed some misleading headlines, so all I can do is point to this particular part of the press release.

We are completing season two on schedule and seeking a new home!

Variety's report contains this:

According to an individual with knowledge of the situation, although the show had aired on Nickelodeon in addition to Paramount+, it will not be returning to Nickelodeon either. Those on the show will complete post-production on Season 2 and then CBS Studios will be free to shop it to other outlets.

‘Grease: Rise of the Pink Ladies’, ‘Star Trek: Prodigy’, ‘The Game’ & ‘Queen of the Universe’ Canceled Paramount+

Paramount+ has canceled a slew of its originals including Grease: Rise of the Pink Ladies, Star Trek: Prodigy, Queen of the Universe and The Game and is taking the shows off its plat…

Deadline
For goodness sake. Paramount+ just gained "The spot for all Star Trek films and series" earlier this month. Now, they have to put an asterisk on that statement, "*except Prodigy."
@Nmyownworld @ValueSubtracted What I struggle to understand is how they don't immediately see how this will only undermine subscriber confidence
It's the hot new trend - Warner and Disney have each done the same thing.
I mean, kind of, Disney hasn't burnt any Marvel if Stat Wars shows.
They've pulled a lot of other stuff, including Marvel's Runaways, which you may or may not count as a "Marvel show".
Here are 50+ shows and movies being removed from Disney+ and Hulu

Disney CFO Christine McCarthy said the company is removing shows and movies from Disney+ and Hulu to be "strategic" with "content creation."

Insider
Point taken, but I don't feel like a long dead show that was dropped from canon almost as soon as it aired is the equivalent of a currently in production canon Trek show.
Disney did pull a few things Marvel, but they weren't prime MCU. They were all documentaries, time-sensitive hype pieces, or shows of dubious canonicity to the MCU.