She's decided that the line is just not as successful as she hoped it would be.
Goco worked as one of the lead fashion designers and contributed tremondously to the overall clothing line.
Gwen hopes that getting a new designer may help inspire her and give the line a fresh start.
It's not all bad news for Zaldy though, he's just started his own clothing line and has been busy styling such celebrities as the Scissor Sisters for their sophomore tour and fashion shoots.
"I think he just had too much going on for Gwen," speculated a source.
A spokesperson for L.A.M.B. declined all comment on the split.