The photo was on the UK version of H&M online store. The photo was pulled after being called out on twitter with many reactions from public people including lots of celebrities.
Grammy-winning artist The Weekend cut ties with the company. The singer released a clothing line with H&M last year.
The Weeknd says he won't work with H&M again.
Some people pointed out the other tops from the same line that were modeled by white children.
G-Eazy had been due to bring out a clothing line with H&M in March.
The rapper and producer explained: "I can't allow for my name and brand to be associated with a company that could let this happen.
"I hope that this situation will serve as the wake-up call that H&M and other companies need to get on track and become racially and culturally aware, as well as more diverse at every level."
Celebrities including rapper and producer Diddy, footballer Romelu Lukaku and basketball player LeBron James have responded to the controversy by superimposing new slogans on the photo of the hoodie.
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