According to the latest edition of Wrestling Observer Radio, most of these cuts were made by Vince McMahon, Bruce Prichard, and John Laurinaitis, with NXT heads Triple H and Shawn Michaels apparently not having a say. The idea is that NXT is going to move back to its original purpose as a developmental territory rather than a third-brand for the company. Head journalist Dave Meltzer states:
“The basic gist is NXT is going to change in some ways. They think a lot of the competitors are too small, and too old. The original idea of NXT was to be developmental and to get guys, with the mentality of ‘we’re trying to find guys who can main event Wrestlemania.”
Later it is added that due to AEW defeating NXT in the weekly ratings WWE wishes to drift away from the “indie-style” type mindset and rebuild, specifically avoiding smaller wrestlers and older wrestlers.
“The basic feeling is they lost a war, and now it’s time to get back to…it is what it is, this is the aftermath, and this is the new direction. The new direction is younger guys and bigger guys. They want people who can be box office attractions and main characters.”
The report makes sure to mention that former NXT champion Adam Cole might be the exception to the rule as the current plan is for Cole to join the main roster if he decides to re-sign with the company.
(Please credit the Wrestling Observer with a H/T Heel By Nature for transcription)