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Or is he an uncuttable fighter?
He might MIGHT get one more chance.
There are reasons not to cut him. But at his price tag, if all the lustre is gone, it's not worth it to keep him.
Overeem losing fights doesn't drastically change his drawing value. I don't see the UFC having a problem with paying Overeem that kind of money if he still draws, not just about winning fights.
There wouldn't be a reason to cut Overeem tbh, he's a good draw and puts on exciting fights whether he gets KO'd or not. If anything, he should consider retiring with another KO loss.