The following is from WWE.com:
World Wrestling Entertainment has come to terms on the release of RAW Superstars Paul London and Chuck Palumbo as of Nov. 7, 2008. WWE wishes them the best in all future endeavors.
It had been reported for some time that these two were on the "endangered species" list within WWE. While Paul London was released, Chuck Palumbo’s contract was simply allowed to expire (which it did today). Palumbo was drafted to RAW back in June in the 2008 Supplemental Draft but was never used. Paul London has made only a few appearances on RAW since his tag team partner, Brian Kendrick was drafted to SmackDown and given a major push as The Brian Kendrick. London was a Cruiserweight, World Tag Team, & WWE Tag Team Champion during his tenure in the WWE and Palumbo was a World Tag Team & WCW Tag Team Champion during his career in the WWE. It’s being reported that Palumbo is working with the Consejo Mundial de Lucha Libre out of Mexico. It is currently unknown where Paul London will go next, but a return to TNA or ROH is a possibility. This is the second time that Chuck Palumbo has been released from the WWE, the first time was on November 3, 2004 when he was released due to budget cuts, along with five other superstars.