I think he only has one fight left on his contract, and will probably have to fight someone pretty difficult. If he loses, the ufc will def use that to devalue any future contract offers which could lead to him looking for more money elsewhere.
So, I don't think they're actively looking to cut him, but they probably feel like they've gotten the best he has to offer and wouldn't mind sending him out on a loss instead of paying him more. It's kind of their style. And even tho I don't like him, I hope this doesn't happen to Colby. It sucks to see fighters put so much into the game only to get nickel and dimed by the billion dollar promotion that profits off their incredibly hard work.