The problem of energy consumption reduction establishes important challenges for electric motor producers in the framework of new international regulations regarding the conditions that must be accomplished by motors in the near future. One of the most important topics is related to the core loss decrease directly linked to the effect of electrical steel degradation induced by the cutting technology. Understanding exactly how this phenomenon occurs by analyzing the chemical, mechanical, crystallographic, magnetic domain, and magnetic properties is of utmost importance when manufacturing processes must be changed and adapted to a new market characterized by high-efficiency motors. Today, mechanical and laser cutting technologies are the most used because of their reduced price and high-speed process. Still, unfortunately, these methods are not the best due to the fact that they lead, in most cases, to a high value of magnetic core losses, low electromagnetic torque, and hence reduced efficiency. This review paper shows that non-conventional technologies such as water jetting and electroerosion could be applied if proper modifications are added. This paper’s main idea is to present a comprehensive study regarding the impact of cutting technologies on microhardness and residual stresses, crystallographic texture, magnetic domain structure, and magnetic properties of some non-oriented electrical steels used in motor production. It provides a detailed analysis of the abovementioned aspects by including the authors’ research and findings in the wider context of other research group contributions. It also offers a general idea of the mechanisms present at the macro- and microscopic levels. The readers can find some of the most used analytical models, including the cutting process’s damaged effect on the magnetic properties’ variation based on a simple mathematical approach and examples of finite element modeling performed on real motor designs implemented in various programs. Last but not least, some practical implementations of the cutting procedure’s influence on motor working conditions are presented in the last section of the paper. It provides an up-to-date analysis regarding how the cutting method should be included in high-efficiency motor production by emphasizing the importance of the topic and identifying where supplementary research must be undertaken. From the investigated literature, by analyzing specific sample geometries associated with different characterization methods, it can be concluded that all the cutting technologies have an important contribution to the mechanical and magnetic quantities. When the magnetic core of an electric motor is produced through non-conventional methods, the overall influence of the cutting procedure has a low percentage in the motor efficiency, as presented in this paper.