Additive manufacturing (AM) introduces unique grain feature and anisotropy in metals, as well as relatively poor surface quality, so the knowledge about the formation of post-machining-induced surface integrity needs to be extended. This study aims to understand the machining phenomena in orthogonal cutting of Inconel 718 produced via powder bed fusion of metals using a laser beam system (PBF-LB/M), paying particular attention to the cutting energy, chip formation, geometrical defects, and microstructural deformation. Experiments are conducted on both wrought (W 718) and PBF-LB/M (PBF 718) Inconel 718, whereby the cutting speed and the anisotropy of the workpiece in the raw state play an important role. The results indicate that less cutting energy is consumed when cutting PBF 718 in the direction perpendicular to its build direction (BD), followed by cutting in its BD. Denser shearing-induced slip lines and relatively continuous chip morphology are found when cutting PBF 718 in its BD, moreover, the effect of cutting speed on shearing deformation of columnar grains under this condition is analysed. More importantly, this study identifies a significant geometrical defect phenomenon which is unique to PBF 718 and highly depends on the cutting speed and anisotropy of grain feature. A detailed characterisation shows that this behaviour is caused by tearing within the grains in the matrix material and not by the presence of hard inclusions, which has rarely been reported in the literature. The microstructure in the subsurface area exhibits that the density of grain boundaries in the cutting direction plays the key role in plastic deformation, as the machining process mainly causes dragging behaviour in the area below the machined surface. Thus, cutting PBF 718 in the direction perpendicular to its BD shows similar deformation layer to W 718, while cutting PBF 718 in its BD displays much stronger subsurface deformation. The obtained results greatly help to understand the cutting phenomena in post-machining of additively manufactured Ni-based components, especially the integrity for a better functional surface.