Pederson had been struggling mightily this season to the tune of a .215 batting average, 11 home runs and 33 RBI.
He hit 26 home runs as a rookie in 2015 and was named to the National League All-Star team, but a massive second-half slump resulted in him hitting .210 that season.
Pederson bounced back in 2016, however, to hit a career-best .246 with 25 homers and 68 RBI.
The 25-year-old had been starting fairly regularly for the Dodgers in center field this season, but they have a number of options at their disposal.
Yasiel Puig is a fixture in right field, the surprising Chris Taylor plays both left and right, NL Rookie of the Year and MVP candidate Cody Bellinger plays left when he isn't at first base, and utility man Enrique Hernandez can play all over the field.
Granderson's arrival gives the Dodgers a ton of outfield depth, and Pederson's struggles mixed with his general lack of positional flexibility made him expendable.
A trip to the minors should allow Pederson to work on his swing, and it is likely he will be back in the big leagues before long with rosters set to expand on Sept. 1.