Abstract: A yarn spindle is provided having a housing, a spindle drive shaft rotatably mounted in the housing, and a cylinder fixedly attached to the spindle drive shaft. The cylinder includes a downwardly extending circumferential skirt, with the skirt and the spindle drive shaft defining an annular space between them. The skirt has a bottom edge with at least four thread cutting slots disposed therein, the slot being a substantially rectangular notch through the thickness of the skirt. The at least four thread cutting slots are equally spaced about the bottom edge. The spindle also includes a waste thread spool statically mounted on the housing for shielding the spindle drive shaft against contact with waste yarn. The waste thread spool includes a frusto-conical barrel having a top end, a bottom end, an axial hole, and an inclined outer wall. The outer wall is angled approximately 30 to 35 degrees from the vertical and has a substantially vertical groove formed therein.