Jones, 24, had appeared in all three of the Warriors preseason games, averaging 2.7 points and 1.3 rebounds in 7.7 minutes per contest.
The Northern Arizona product helped Santa Cruz reach the D-League Finals last season and was crucial to Golden State winning the summer league championship in Las Vegas this summer.
Jones was one of four training camp invitees (Joe Alexander, Seth Curry, and Dewayne Dedmon) competing for Golden State's 15th roster spot.
With Jones' release and Alexander sidelined with a left leg tibial stress reaction, the possibility for Curry or Dedmon to make the team has increased.
It's likely that Jones will get another shot in the D-League or with another NBA team.
The Warriors now have 17 players under contract.