The decision to "permanently deactivate" the "Scorpion" unit came yesterday after the city's police chief CJ Davis met with the unit's remaining officers to discuss a way forward in the wake of the death of Nichols.
It comes as protesters took to the streets for rallies across the United States calling for justice after the death of the 29 year old.
The video shows a violent confrontation between officers and Nichols, during which officers can be seen punching him and using batons and taser weapons to subdue him as he cried out for his mother.
The officers were then seen standing around after the attack and failing to provide any medical care as they laughed and joked about their roles in the arrest.
Protests took place immediately after the release of the video on Friday night, with protesters in Memphis shutting down a bridge on I-55. There were no arrests made, say police in the city.
Police in riot gear faced off with protesters in Los Angeles after a crowd gathered outside the Los Angeles Police Department headquarters.
Nichol's death comes not long after a candlelit vigil was held in the city for Nichols and Keenan Anderson who ho died in the city earlier this month after a confrontation with police.
In New York three protesters were arrested, one of whom climbed onto a police car and smashed the windshield, according to NYPD.
Marches were expected took place yesterday in Memphis, Georgia, Boston, Columbus, Baltimore, Salt Lake City and Pittsburgh, among other cities.
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