By cutting him, the Giants save $5 million against the salary cap with the removal of his salary and a $100,000 workout bonus that won't be earned with him off the roster.
A bruising runner, the 6-foot-4, 264-pounder rushed for 4,849 yards and 56 touchdowns.
The Giants recently restructured quarterback Eli Manning's contract, too.
The Giants will rely upon Ahmad Bradshaw, D.J. Ware and Da'Rel Scott going forward.
And Jacobs will hit the free agent market, looking for a new place to impose his punishing running style.
For more coverage of the NFL, go to profootball.scout.com.
Follow me on Twitter: @RavensInsider