McDonagh didn't play a senior game for the club after being selected in the 2021 NAB AFL Draft as a mature-aged recruit.
27-year-old Cutler played 96 AFL games with 30 of those coming at Essendon after he arrived at Tullamarine in the 2019 trade period
Hird, the son of former premiership captain and head coach James Hird, also departs the Bombers without playing a senior game.
General Manager of Football Josh Mahoney thanked the trio in a statement for their services and time at the club.
“It is always a tough time of the year when we make changes to our playing list,” Mahoney said.
“These three players handled this news with great professionalism and we wish them all the best for their future endeavours. They will always be welcome at the Essendon Football Club.”
With the Bombers on the lookout for a new senior coach, James Hird's name has been firmly in the conversation over recent weeks.
While the Bombers legend is yet to indicate whether he is interested in returning tp the position, there is reportedly some members of the board who are supportive of a nostalgic return.