Woodhead carried cap numbers of $3.3 million for 2018 and $3.75 million for 2019, according to Over The Cap. Cutting him now saves $1.8 million against the cap next season.
The 33-year-old was signed to a three-year, $8.8-million contract last offseason. He played just eight games in his one season with the Ravens, spending time on the injured reserve due to a hamstring injury suffered in Week 1.
He finished the season with 14 carries for 56 yards and no touchdowns, adding 33 receptions for 200 yards.