Davis was drafted with pick 64 at the 2010 NAB AFL Draft but in three seasons with the Bombers did not manage to break into the senior side.
He played in this year's NAB Cup.
Hunter arrived at the club with hamstring problems but the club was willing to give the fearless midfielder time to recover, and he spent two years on the Bombers' rookie list.
"Luke and Hal are terrific young men who have been fantastic contributors to our football team both on and off the field," Essendon list manager Adrian Dodoro said.
"The club would like to wish them all the best for their future football and personal careers."
It means the Bombers have made four list changes, after David Hille and Nathan Lovett-Murray announced their retirements last week.
The veteran pair played their final game for the club in Saturday's night's loss to Richmond.
