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During cutting, there is a plastic deformation in the cutting area and subsequent hardening of material occurs in this area. The hardening of material in the cutting area causes a change in its mechanical properties, which also has an impact on the physical properties of the material. The hardening manifests as an increase in strength, hardness and yield strength and reduction in the elongation and impact strength. The hardened area increases "watts losses" and reduces the magnetic induction in iron. The electrical resistance increases, which is related with failures in the atomic lattice. The degradation of the electrical conductivity can be explained by the fact that any defect resulting in cold forming causes a dispersion of electron waves. The magnetic properties of iron depend on the distribution of the magnetic field in the crystallographic structure. Violation of the crystallographic structure by forming destroys the magnetic field distribution. The magnetic properties get worse. In the end it causes a reduction in the efficiency of electric machines. The paper analyses the influence of cutting on microhardness in the cutting area.