Morgan Wallen has been dropped by WME, his talent agency, amid ongoing drama surrounding his use of a racial slur.

The 27-year-old country musician was recently caught on video using the n-word and has faced massive fallout since.

Some of his country contemporaries have condemned his actions on Twitter, while his record label, Big Loud, has suspended his contract and iHeartRadio pulled his songs from airwaves.

In a major hit on Wednesday, the Academy of Country Music announced that he would be ineligible for the year's awards.

MORGAN WALLEN WILL LIKELY FACE TWO-YEAR CAREER 'SETBACK' AFTER 'LETHALLY STUPID' N-WORD VIDEO, EXPERT SAYS

Now, WME has let Wallen go, the agency confirmed to The Hollywood Reporter.

Morgan Wallen was caught using the N-word on video and has been dropped by his talent agency, WME.

Morgan Wallen was caught using the N-word on video and has been dropped by his talent agency, WME. (AP)

Reps for WME and Wallen did not immediately respond to Fox News' request for comment.

Wallen previously apologized for using the slur.

"I'm embarrassed and sorry," Wallen, 27, said in a statement shared with Fox News.

"I used an unacceptable and inappropriate racial slur that I wish I could take back. There are no excuses to use this type of language, ever. I want to sincerely apologize for using the word. I promise to do better," he continued.

MORGAN WALLEN INELIGIBLE FOR ACM AWARDS FOLLOWING USE OF RACIAL SLUR

Eric Schiffer of Reputation Management Consultants told Fox News, "Morgan's case will cause him short-term financial pain. If he reaches out to those in the African American community through action and within media, he should be able to return to his pre-incident levels within a year or two."

Morgan Wallen has also been suspended 'indefinitely' by his record label and pulled from iHeartRadio airwaves. It was also announced that he is now ineligible for this year's Academy of Country Music awards. (Photo by Jason Kempin/ACMA2020/Getty Images for ACM)

Morgan Wallen has also been suspended 'indefinitely' by his record label and pulled from iHeartRadio airwaves. It was also announced that he is now ineligible for this year's Academy of Country Music awards. (Photo by Jason Kempin/ACMA2020/Getty Images for ACM)

"It's a setback but it's not a blistering catastrophe for the future of his career. It is, though, a seismic moment and one that is probably a big wake up call," Schiffer added.

CLICK HERE TO GET THE FOX NEWS APP

This isn't Wallen's first public scandal. Last year, he was spotted at a crowded house party that seemed to ignore coronavirus safety protocols just days ahead of a scheduled performance on "Saturday Night Live."

CLICK HERE TO SIGN UP FOR OUR ENTERTAINMENT NEWSLETTER

He was pulled from that week's episode and scheduled for a later date. He poked fun at the incident in a ketch when he eventually appeared on the show.

Fox News' Melissa Roberto contributed to this report