WWE just announced the following. It's worth noting they got the date wrong on their announcement.
WWE has come to terms on the release of WWE Superstars Hornswoggle and Alex Riley as of Friday, May 6, 2015. WWE wishes them the best in all of his future endeavors.
Riley has been working WWE NXT for the past year while Hornswoggle has been sidelined since being suspended for a WWE Wellness violation last year. Hornswoggle just tweeted the following this morning: