I have velcro wraps attached to almost all my headphones' cables. When they're stored, they're coiled up completely and the wrap attaches the cable coil to the headband to keep it under control. Otherwise, I uncoil enough to have sufficient play in the cable and the rest loosely looped and held in place with the wrap. If that makes sense.
Cutting the cable and reterminating makes sense if you know that you will always and forever only need a certain shorter length of cable for your phones, but some velcro straps holding loops of free cable are a second-best option.