Pals fear Ashlee Simpson-Wentz is teetering on the edge of an emotional breakdown after Melrose Place eviction..

The rail-thin 25-year-old singer/actress is devastated after being axed from the cast of Melrose just two months into the season.

“Ashlee didn’t see it coming, and now she’s crushed,” divulged an insider. “She invested her heart and soul into the job. She feels like the rug has been pulled out from under her.”

The CW network abruptly announced on Oct. 22 that Ashlee’s character Violet was being booted – along with co-star Colin Egglesfield, who plays Auggie. At the same time, the network said it would order a full season of the show.

Even before getting dropped by the show, Ashlee was going through a tough time.

“She is struggling to hold her marriage together, dealing with motherhood and practically starving herself to look good,” said the insider.

As The ENQUIRER previously reported Ashlee had been crash dieting and stressing about how she measures up to her gorgeous co-stars.

The 5-foot-6 performer, who gave birth to son Bronx Mowgli in November 2008, is extremely thin, and she’s been substituting Red Bull energy drinks and nuts for meals, say those close to her.

“Ashlee’s friends are concerned that she’s headed for an emotional meltdown,” said the insider.

“She was desperate to establish herself as a serious actress, but now she’s worried that she’s failing.”

The situation isn’t much better on the home front – Ashlee and rocker husband Pete Wentz, who married in May 2008, have hit a rough patch.

The day Ashlee learned she was getting canned, Pete was partying at a charity event while his wife stayed at home, caring for their sick baby.

“Ashlee is jealous of the groupies who throw themselves at Pete, and Pete is frustrated with Ashlee’s obsession with her looks and her career,” added the insider.