Viewed purely as a cost-cutting move, this is a strange decision by the Jets. If recently signed former Dolphins practice squad defensive tackle Isaako Aaitui becomes Dixon's replacement as expected, the team saves just $150,000 in base salary, according to Manish Mehta of the New York Daily News.
Dixon was due to earn $540,000.
The Jets were one of the NFL's most active teams on the wire on Saturday. They also signed Clyde Gates, reuniting the wide receiver with offensive coordinator Tony Sparano, who coached Gates in Miami last season.
Follow Dan Hanzus on Twitter @danhanzus.