This move is not surprising. Williams was still an above average starter last year, but had clearly lost a step, and was not worth the top dollar the Packers were paying him.
In the wake of Williams' absence, Casey Hayward and Micah Hyde are expected to compete for the starting job opposite Sam Shields. The Packers may also dip into later stage free agency for a veteran corner. The position is virtually a lock to be addressed in the NFL Draft, possibly even in the first round.
However the Packers intend to the fill the holes left by Tramon Williams and Davon House, one thing is certain: all of a sudden cornerback is probably the position of greatest need on the Packers' roster.
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