Woodland has withdrawn for personal reasons.
"Due to a personal family matter, Gary Woodland must withdraw from the World Golf Championships-Dell Technologies Match Play," his agent, Mark Steinberg, said in a statement. "We ask that you respect his family's privacy at this time."
McIlroy had to win Thursday to avoid elimination, though that remains in play. If Soren Kjeldsen defeats Emiliano Grillo, the Dane wins his group because he was to play Woodland on the final day of round-robin play.
Woodland was the runner-up in Match Play two years ago.
Jason Day, the No. 3 seed, withdrew on Wednesday to be with his mother when she had lung cancer surgery.
Information from The Associated Press was used in this report.