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To "cull" is to remove from your flock. It can be killing but typically that is the last resort.
You can choose to "cull" from your perpetuation pen to your production pen or personal egg laying pen, but yes, typically it means kill and in many cases eat.
Last year my wife, 8 kids and I "culled" 217 buckeyes, all were dined upon, I don't have multiple flocks and I don't sell full grown birds unless they are SOP (standard of perfection). The reason I don't sell the "cull" is that I don't want the birds that don't meet SOP to be known as Buckeyes from Buckeye Dave.