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Back in July 50 Cent was asked about the possibility of Lloyd Banks signing to Def Jam. Fif responded by saying he didn't think it could happen because the company was having financial problems.

"Well, Def Jam, I'm not even sure what that system — that system is not in a good space right now. They're like $80 million in the hole...Don't tell them I told you," Fif said at the time.

Later that month The Wrap published an article detailing problems at both Motown and Def Jam. They indicated big changes were coming for both labels, and that Ethiopia Habtemariam would be tapped to run Motown.

Habtemariam (pictured below) was named Sr. Vice President of Motown last week.

Despite the rumors of financial problems, Island Def Jam CEO Barry Weiss, released a statement last month denying any such issues.

"I don't know what the f*ck they're talking about. Def Jam is not broke, it's on fire!," Weis said in an interview. "We just did a deal with Kanye's G.O.O.D. Music and Big Sean's album is a great success and will continue to garner a lot of attention. Kanye and Jay-Z's Watch The Throne has the whole world buzzing. Jeezy's got an album coming out and his show last night in NYC has the whole industry excited. Rihanna just ended her amazing tour of her amazing album. Frank Ocean is on the verge of super stardom. Rick Ross and so many other great artists are part of our incredible roster. Of course we are looking to maximize our potential and are in search of additional African-American leadership to take us to the next level. But, let me be clear, Def Jam is on fire."

That fire appears to be flickering right now as Def Jam just laid off over 20 staffers, along with industry executives Jonathan McHugh and Chris Hicks according to AllHipHop.

As further proof of a shake up Brandon Creed, has been named A&R consultant for both Island Def Jam and Universal Republic.

In a statement released today Weis, welcomed Creed to the team.

"As we continue to expand our creative investments, Brandon is a perfect fit. Besides being a great artists' manager, he is also a talented A&R and creative executive. We plan to get him very involved across our labels at Island Def Jam Motown and Universal Republic," Weis said.