Fair Isaac Corp. to cut 15% of workforce in AI restructuring

Fair Isaac Corp., the company behind the FICO credit score, is eliminating approximately 15% of its workforce as part of a restructuring plan focused on artificial intelligence. The move aims to reduce organizational layers, simplify operating structures, and integrate AI-driven product development to bring innovations to market faster.

Based on the company’s September 2025 headcount of 3,811 employees, the reduction could affect roughly 570 positions. FICO expects to incur approximately $27 million in pretax charges during its fiscal fourth quarter to cover severance and related costs. The restructuring is expected to be substantially completed by the end of the company’s fiscal third quarter in 2027.

The company faces increased competition in the mortgage credit scoring sector following a decision by the Federal Housing Finance Agency to allow lenders to use VantageScore alongside FICO for mortgages sold to Fannie Mae or Freddie Mac.