Crew watched cutter (7)
I believe the answer is:
bandsaw
'cutter' is the definition.
(I've seen this before)
'crew watched' is the wordplay.
'crew' becomes 'band' (both can mean a group of people).
'watched' becomes 'saw' (seeing is a kind of watching).
'band'+'saw'='BANDSAW'
(Other definitions for bandsaw that I've seen before include "one might cut deal" , "cutter" , "Powerful tool" , "Tool used by a carpenter or joiner" .)