The Rockets signed our nation's greatest hero on Nov. 1. Seven days later, Chuck is out of a roster spot. The Rockets don't play again until Wednesday night against the Brooklyn Nets. Terrence Jones has been out for days because he has a lacerated eyelid. While an injury that seems incredibly difficult to play through, it's also fast-healing.
With Jones back in the rotation, Dwight Howard healthy, Clint Capela emerging and Montrezl Harrell contributing (although less and less each game, it seems), it was time to cut Hayes loose.
Since before the season began, Daryl Morey seemed willing to give Chuck Hayes a roster spot as long as there was a clear path to playing time. The Chuckwagon signed a non-guaranteed contract in the offseason, then didn't weirdly, before hopping onto the Clippers preseason. But the Clips cut him, and he was a free agent until the day after Halloween.
The Chuckwagon loves Houston almost as much as Houston loves him. He makes his offseason home here, there's been a mutual interest between him and the front office into getting him onto the coaching staff. I think this is likely a classy move for Morey: cut the Chuckwagon, see if another team wants to sign him, and if not, hire him as a coach.
If that happens, then congrats on the great career and welcome, eventually, to the coaching staff. If not, then hopefully Chuck signs with an Eastern Conference team.