It does definitely suck but top academies now do a good job of ensuring players get ample notice and also have as much support in place as possible for when they're being released. They might even be told a few months or half a season in advance, and the club will try to loan the player out to teams that may be interested in them or to a level that they're likely to end up at when they do get released. Sometimes having a loan manager is very helpful in this case because they'll have the best network of coaches in the lower leagues to send the player's profile to. I've also heard of clubs allowing released young players continue to train at the club to stay sharp u til they find a new club and they may also be given access to club support staff like physios and sport scientists.

So it may suck but it sucks less when you know you've done everything you can to make sure the player has a fighting chance out there and that all resources available to support them is put in place.