1. To give up on something. Taken from the phrase "fish or cut bait," meaning to either work productively or else stand aside. After three years of hating medical school, Sean decided it was time to cut bait and try something different.

2. Literally, to cut fish into small pieces to be used as bait. These days, bait is mostly processed in a factory, but I still like to cut bait myself when I'm out fishing.