It's rare for Dana White to come out and make it clear that a fighter will get cut if he loses, but he comes out and says it today to Kevin Iole:
UFC president Dana White, who isn’t shy about releasing a fighter, was adamant that Alexander needs to turn things around. “There’s no doubt about that,” White said. “He needs a way. He desperately needs a win. Another loss and he’s going to have to go out and start working his way back up to the UFC.”
I think a lot of people suspected this, and it shows that even though the guy just signed a 5 fight contract, he still needs to win. The UFC is very high on him if he can get a few wins, because he is popular and explosive. If he gets a big KO or two they will really get behind him.