Joe McElderry, 2009 X Factor winner has been dropped by his record label after his last single sold only 7000 copies.
McElderry beat Olly Murs to win the talent show in 2009.
A source told the Daily Mail that Joe is devastated by the news and has moved back in with his Mum.
“Joe is devastated. His mum has been comforting him. He believed he could have a great music career.”
They added: “Although he is still on SyCo’s books, his deal runs out in about a month and it won’t be renewed.”
A source at Simon Cowell’s SyCo label said: “Joe’s a lovely boy and it is a pity it did not work out, but no one can say Simon and his staff did not try to make it work.”
They added: “Simon gave Joe the best chance possible of success by making sure he worked with some of the world’s top producers.”
McElderry was the only X Factor winner not to score a Christmas Number One after Rage Against the Machine’s Killing in the Name beat him to the top spot after a Facebook campaign.