Jones was informed on Saturday afternoon that he did not make New York's 25-man active roster for the upcoming series, which starts Sunday night in Baltimore.
The 35-year-old Jones will remain with the Yankees and could eventually be activated after the ALDS, but for now, he'll have to sit back and wait for an opportunity.
"It's disappointing but I'm frustrated with myself more than anything," Jones said in the Yankees clubhouse shortly after being informed of the club's decision.
"I just didn't finish as strong as I wanted to finish. So I don't think I deserved to be on it. This is a really short series so we need to have guys that have a hot bat."
The Yankees' decision doesn't exactly come as a surprise considering Jones' prolonged struggles at the plate during the second half of the year. At the All-Star break, Jones was hitting .244 with 11 homers and 22 RBIs but the numbers went into a sharp decline from that point on.
Jones managed to hit just .142 with six extra-base hits and 12 RBIs the rest of the way. The production was even worse in September, which all but assured utilityman Jayson Nix and infielder Eduardo Nunez would both be chosen for the postseason roster.
New York's final 25-man roster for the ALDS is not expected to be officially announced until Sunday morning.