The music mogul told how an argument erupted over a song writing credit for the group's latest hit single Woman Like Me, with Cowell claiming Perrie Edwards, Leigh-Anne Pinnock, Jade Thirlwall and Jesy Nelson, didn’t even want to record the track.
He told the Sun: “It was just embarrassing but, funnily enough, I was more annoyed, again, not about me, but about the fact people who had worked so hard in my company were being misrepresented.
“Why do artists think they’re more important than staff members? They’re not. They’re the same.”
X Factor judge Cowell added that the decision had nothing to do with finance.
He said: “It wasn’t down to money. Basically, they said we’d done a terrible job. I had agreed not to talk about this publicly because I thought it was a private matter. I said, ‘We can’t work with the management, it’s as simple as that’.”
The 59-year-old went on to explain that he intends to meet with the band in the coming days so they can “hear it from him.”
Despite the differences, Cowell praised the four-piece for their work ethic, hailing them the “hardest working bunch of girls”.
Cowell said: “Well, I can show you all the correspondence between me and the girls over the years, there’s never been an instance when we’ve fallen out.
“As I said in my email to them, I stand by the fact they are the hardest working bunch of girls I’ve ever worked with. They deserve everything they’ve got.”
Cowell also addressed claims that the Black Magic hit makers were asked by their US record label to “flirt” with radio executives in America, insisting he has a “zero-tolerance” approach to inappropriate behaviour.
He added: “If we'd have known about that at the time, whoever said that, he or she would have been fired."
Standard Online has contacted representatives of Little Mix for comment.