Dreaming about cutting implies you are trying to symbolize a downside or elimination of parts of your life. The dreamer may be feeling that they are not able to do what they want to do in life unless they could remove negative aspects or whatever is holding them back mentally or emotionally.
Some who dream about cutting out negative or extreme feelings is a mechanism for balancing their emotions, despite emotions being deeply rooted within the human psyche.
Also, a deep cut in a dream indicates the person felt the pain of their struggle was getting too intense and that they needed to completely change their life. The person may have been unwilling to endure losses and challenges anymore. Or they may have been angry that they couldn’t completely remove all sources of pain because it would destroy them in the process.
Some people dream of cutting because spiritual healing is what’s needed to finally let go forever. They might feel like at peace with the way things are while being clear on what changes need to be made.