Backstage Update: Why Katie Lea Was Fired By WWE
Partial Source: The Wrestling Observer Newsletter
WWE's decision to cut Katie Lea cut was something not known well in advance as the creative team had earlier in the week decided to move her to SmackDown!, before getting the word that she wasn't going to be part of the draft due to her termination from the company.
There had also been talk of moving Gail Kim to SmackDown! during the Draft to replace recently released babyface female performers Mickie James and Maria Kanellis, but internally, Kelly Kelly is seen as the bigger star and thus she got the nod.