The team also waived safety Roderic Teamer, two days after he was arrested and charged with DUI and speeding.
"Yeah, it's always difficult when you have to release a player," Raiders interim coach Antonio Pierce said in his weekly news conference Monday. "That conversation, I don't look forward to. Hate it. Hate it. It's not good. It's not a good feeling.
"Me and MP had some good conversations throughout this entire process. I was the linebacker coach when he first got here. On and off the field, [he's] somebody I respect as a person. I respect what he's done in this game. He's professional, but it's a business. We're all going to get cut. We're all going to get fired. Get hired to get fired, right? So, he understands that; I understand that. It's part of business that we all hate for ourselves."
Peters, 30, was signed to a one-year, $3 million free agent contract with $1.165 million guaranteed and a roster bonus of $60,000 per game active on July 24 by the former regime of general manager Dave Ziegler and coach Josh McDaniels, and was expected to lead a young and impressionable secondary.
And while Peters had a 75-yard pick-six at the Detroit Lions on Oct. 30, his seventh career INT returned for a TD, he was more known this season for dropped interceptions and comically missed tackles.
It was after another such whiffed tackle against the Chiefs on Sunday that Peters was taken off the field, and he engaged in a spirited sideline conversation with Pierce.
Peters, a two-time first-team All-Pro, bolted for the locker room at halftime, and after spending the second half on the sideline wearing a beanie, he left the locker room before the media was allowed in following the game.
In 116 career games and 115 starts, Peters has 33 interceptions. He was the 2015 NFL Defensive Rookie of the Year for the Chiefs after picking off a league-leading eight passes and returning two for scores. He was drafted by Kansas City in the first round, No. 18 overall, out of Washington.
Teamer, meanwhile, was arrested Saturday night on his way to the team hotel, per a source, and charged with "DUI of alcohol and/or controlled or prohibited substance" and a "basic speeding violation -- 21-30 miles per hour over posted speed limit" Saturday night, per Las Vegas Justice Court records.
Both charges were listed as misdemeanors.
Teamer, 26, had just been activated off injured reserve that day after having appeared in six games, last playing on Oct. 15. He served an NFL-mandated four-game suspension in 2020 for violating the league's substance abuse policy.
Pierce said the message to the team was "just making smart decisions" in the wake of Teamer being waived.
"I think it goes for all of us," Pierce said. "The ultimate respect for Teamer as a person, got to know him well, I had a lot of good conversations with him. I wish him the best, sometimes it's wrong timing, bad timing, and this is one of those cases. Decided to move forward.
"But I think all our guys need to understand this -- whatever you do on and off the field affects the decision that's going to be made in this building, and we're going to do the best to protect the brand, the shield and the Raiders organization."