The Pulse

FICO Plans to Cut 15% of Its Workforce in AI Restructuring

Fair Isaac plans to eliminate about 15% of its positions as it simplifies operations and integrates AI-driven product development. The October 6 filing forecasts about $27 million in pretax charges and says the cuts should be substantially

AI.info Team · Written with AI · 2026-10-08

One position in seven

Fair Isaac plans to eliminate approximately 15% of its positions, a reduction that could amount to about 570 jobs if measured against the 3,811 employees the company reported at the end of September 2025. The company’s October 6 filing does not state a specific number of affected employees; the estimate of roughly 570 is an arithmetic comparison with that older headcount, not a figure FICO disclosed for the planned cuts.

Management committed to the reduction on October 1. FICO says the plan will reduce organizational layers, simplify its operating structure, optimize processes and tools, and integrate AI-driven product development. It began notifying affected employees during the week of October 5.

$27 million in expected charges

FICO expects to record about $27 million in pretax charges in the fourth quarter of fiscal 2026. The filing says the costs cover employee severance and related expenses under the company’s existing severance plan or applicable local requirements, and that substantially all are expected to result in future cash expenditures.

The company expects the workforce plan to be substantially complete by the end of the third quarter of fiscal 2027. Its filing describes that timing, the scope and the estimated costs as forward-looking statements subject to risks and uncertainties. It does not identify which teams, locations or job types will be affected, or say how much the restructuring is expected to save.

FICO says the new structure should speed product work

In a statement to Reuters, FICO described the intended effect of the reorganization:

“This simplified structure will allow us to operate and bring innovations to market faster and create more value for our customers,”

FICO, in a statement to Reuters

The filing therefore establishes two parts of the plan—the staff reduction and the stated move to integrate AI into product development—but does not say that AI systems will directly replace each affected employee’s work. It also offers no estimate of how many roles the new product-development approach may create or change.

The cuts come as mortgage scoring faces new competition

The restructuring arrives as FICO confronts changes to mortgage credit scoring. HousingWire reported that federal mortgage regulators have opened the door for approved lenders to use VantageScore 4.0 as an alternative to the Classic FICO model for loans sold to Fannie Mae and Freddie Mac. The outlet also reported that lenders are beginning to adopt different approaches to the competing scores.

FICO’s workforce filing does not connect the job cuts to those regulatory changes or specify whether any business unit will bear a larger share of the reductions. The company’s public timetable gives employees and investors a broad endpoint—by the end of fiscal 2027’s third quarter—while leaving the distribution of cuts and the expected savings undisclosed.