Yes, a player's scholarship can be rescinded anytime after the conclusion of the job change period, and prior to signings starting during the following recruiting period. Note that you must have seasons remaining on your account before you can rescind a scholarship. Simply click on 'rescind scholarship' next to the player's name in the coach's office.
Keep in mind that rescinding a scholarship of a player who you signed for no fault of the player may make recruiting for your school more difficult in the future, as no kid will want to play at a program which isn't loyal to its players. You do not receive any additional recruiting money when you rescind a scholarship. Also, cutting a player could cause other players to leave as well.