Simmons, 32, appeared in 34 games for the Cubs after signing a one-year, $4 million deal with them last offseason. He hit .173 with seven RBIs in 75 at-bats and was plagued by a right shoulder ailment that landed him on the IL several times this year.
"There's no room for him, to be honest," Cubs manager David Ross said Saturday. "Look, he's nothing but a pro, but this year hasn't gone the way any of us expected, starting off hurt with the shoulder.
"He's never had a shoulder issue in his career and just dealing with that and trying to come back. Phenomenal person, great professional. I'm going to miss him personally."
The 11-year veteran signed with the Cubs to play shortstop, but ended up seeing as much time at second base with Nico Hoerner emerging as the team's everyday shortstop. Simmons also made his major league pitching debut, giving up five runs in a blowout loss to the Cincinnati Reds in May.