From The Hollywood Reporter
CBS has nuked "Jericho."

Producers were told Thursday the show is ending its run on the broadcast network, sources said.

CBS will air the season finale next week with a resolution that helps give closure to fans.

After the first season concluded with an abrupt cut to black, fans famously inundated CBS with tens of thousands of pounds of peanuts to urge the network to continue the show.

For the seven-episode second season, producers shot two endings — one that leaves viewers in suspense for a third round, another that is more conclusive.
The ending chosen by CBS will wrap up the final season’s storyline, where the nuclear war survivors of a Kansas town struggled under a violent occupation by a government contractor.

"The March 25th episode of Jericho will be the series finale," CBS said in a statement. "Without question, there are passionate viewers watching this program; we simply wish there were more. We thank an engaged and spirited fan base for keeping the show alive this long, and an outstanding team of producers, cast and crew that went through creative hoops to deliver a compelling, high quality second season. We have no regrets bringing the show back for a second try. We listened to our viewers, gave the series an opportunity to grow, and the producers put a great story on the screen. We’re proud of everyone’s efforts."

Tuesday’s finale doesn’t entirely slam the door on the series, but is notably different from the cliffhanger version, sources said. The ending also doesn’t entirely preclude the possibility of "Jericho" finding a second life on cable. The high cost of the production, however, will likely prevent a continuation of the show.
Despite the erosion of broadcast ratings in recent years, the massive protest that saved "Jericho" last year has been called the largest fan effort ever to try and halt a network cancellation of a series.

The outcry put CBS in a tough position, whether to renew a show that has below-the-line ratings, yet unprecedented fan support. "Jericho" also performed well online on CBS.com and in iTunes downloads.

 
Unfortunately for the network and fans, the second season’s Nielsen ratings were even lower than the first. The most recent episodes have averaged about a 1.9 rating among adults 18 to 49 in the show’s Tuesdays at 10 p.m. time period. The network’s decision to cancel the show still might not have been easy, but it was easier to see coming.

"’Jericho’ is unique because the fans saved it — watching it on the Internet and streaming and iTunes downloads, all those things that are not being counted," said executive producer Carol Barbee in a recent interview. "That’s what ‘Jericho’ will be known for."

Variety Magazine have confirmed that CBS’ sci-fi/drama series “Jericho” has been cancelled.

In addition, Carol Barbee (co-executive producer on Jericho) has confirmed the news to Subject2Discussion radio show in Los Angeles.

According to online sources, the crew of the show were informed of the cancellation today.

One source on a popular web forum states that the cancellation has been confirmed by a member of the cast/crew of Jericho on the official CBS message boards, but that the producers have already begun trying to move the show to another network.

The news comes less than a month after other reports appeared online claiming Jericho was not only set for a second season pickup, but would also be moved to a new night to escape American Idol.

CBS are set to unveil their new Fall schedule tomorrow, so absolute confirmation will arrive with that announcement.

Jericho debuted to strong ratings in the Fall of 2006, and the decline in those ratings hasn’t been enormous since. What does a show now need to do before it’s cancelled? Jericho’s ratings were NOT poor. It was holding second for the hour each week. Does a new drama now have to win its hour each week to assure itself a place in the next years line up? Has American television really become that pathetic that shows aren’t given any chances?

Yeah, looks like it has.