His losing streak is only half the reason he got cut. When you have a losing streak and show no signs of improvemnt THEN that's when you get cut. There have been plenty of fighters that were on losing streaks but didn't get cut. Why? Because they improved or did better. Kimbo Slice lost just 1 fight in the UFC but got cut because of his performance. When it comes to getting cut it all depends on your performace.
You lose fights, you become expendable, and you lose your contract. The UFC doesn't pay you a huge salary to lose. My boy Thiago sealed his fate. It's the way of the game.