Up until his release, DeJoseph had been working as a member of SmackDown's creative team, but there's no news on exactly why he was let go. DeJoseph had only rejoined the promotion last December - this was his second spell with WWE. The first ran from 2004-2010 before he left to do some work with other groups like MLW and Lucha Underground.
Older fans may recall seeing DeJoseph perform as the comedy character 'Big Dick Johnson' on programming during his first stint. That character obviously wasn't reprised when he was rehired by WWE late-last year.
It's unlikely executives at FOX were clamouring for a walking penis joke on SmackDown when they'd paid a pretty penny to secure the Friday night weekly.
The Observer added that they'll have word on why DeJoseph was let go soon. There's a chance he's only been furloughed, but that's mere speculation based on recent examples.
It does seem a bit weird that WWE released someone who had only been back in the company for less than six months.