Schmidt was optioned to the Yankees' alternate training site Sunday, Kristie Ackert of the New York Daily News reports.
Schmidt made just two relief appearances during his time on the major-league roster. He had a rough showing in his debut but settled down in his second outing. The right-hander hadn't pitched in nearly a week, so he'll presumably get more consistent time to develop at alternate camp. It's unclear whether the 24-year-old prospect will return to the Yankees' pitching staff over the final two weeks of the regular season.