Meaning "to dilute, adulterate" (liquor, etc.) is by 1930. Colloquial sense of "to divide or share" is by 1928, perhaps an image from meat-carving at table. As a director's call to halt recording or performing, by 1931 (in an article about Pete, the bulldog with the black-ringed eye in the Hal Roach studios shorts, who was said to know the word). The sense of "perform, execute" (c. 1600) is in cut capers "frisk about;" cut a dash "make a display."

To cut down is from late 14c. as "to fell;" by 1821 as "to slay" (as with a sword); 1857 as "to curtail." To cut (someone or something) down to size is from 1821 as "reduce to suitable dimensions;" the figurative sense, "reduce to the proper level of importance," is by 1927.

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