That's been the wording CN, Cyclingtips etc has been using from the start - DSM severed the contract.
The only reasons I can think of for doing this so quickly would be a performance based contract with unreasonably high bonuses/payrises or an internal dispute.
Another potential development - didn't Scott move teams to DSM to have a high profile Swiss rider on their bikes?
CN article said "reached a settlement agreement with the rider" and that an agreement to terminate the contract was agreed upon between them.
I think it is likely they were paid a fee to release him and in an agreement with the rider terminated the contract.
"Settlement" could also mean paying him what he was owed before terminating the contract.
It depends on how you interpret the statement from the team. Which is the only thing to go by right now. Which isnt much without knowing what happens next, officially.
If it were a dispute or other things we dont know about yet, then that will surely come to light.
We will have to wait until he is announced for another team, officially, or if there is some funny business going on.