'American Idol' season 7 runner-up David Archuleta is facing a major setback in his once-promising post-'AI' career.

The 20-year-old's bad news went public yesterday, according to the Los Angeles Times: Jive Records says they've dropped the singer from the label after three years, with a company spokesperson confirming, "David was released from our roster."

Archuleta was just 16 when he lost 'Idol' (bested by David Cook), but he won countless fans who adored his sweet smile and formidable vocal skill. Still, the record business is all about numbers: Archuleta's 2008 self-titled debut, featuring the hit single 'Crush,' was certified platinum and sold almost a million copies worldwide. Yet that may get chalked up to beginner's luck, as his sophomore studio album has struggled to rack up 60,000 in sales since its release a few months ago.