Updated:
Fair Isaac Corp., the credit-scoring company known as FICO, plans to eliminate approximately 15% of positions across the company as it simplifies its organization and integrates artificial-intelligence-driven product development. The company disclosed the plan in a securities filing on October 6, 2026, saying affected employees began receiving notifications during the week of October 5.
The restructuring is intended to reduce organizational layers, simplify operations and optimize processes and tools, according to the filing. FICO did not disclose the number of employees affected. Reuters reported that the company had 3,811 employees at the end of September 2025, a workforce figure that would imply roughly 570 positions if applied to the announced percentage; that is an estimate, not a company-confirmed layoff count.
Plan carries $27 million in expected charges
FICO said it expects to record approximately $27 million in aggregate pretax charges in the fourth quarter of fiscal 2026. The filing identifies employee severance and related costs as the source of the charges and says substantially all are expected to result in future cash expenditures.
Management committed to the reduction plan on October 1, according to the filing. FICO expects it to be substantially completed by the end of the third quarter of fiscal 2027. The company cautioned that the anticipated scope, timing and costs are forward-looking estimates and could differ from actual results.
In a statement to Reuters, FICO said the simplified structure would allow it to operate and bring innovations to market faster and create more value for customers. The company did not provide a breakdown of roles, business units or locations affected, nor did its filing detail which tasks or products would be changed through AI integration.
Mortgage scoring market is opening to competition
The workforce announcement comes as FICO faces a more competitive environment in mortgage credit scoring, a business in which its scores have long been widely used by lenders. On September 9, the Federal Housing Finance Agency and Fannie Mae and Freddie Mac expanded VantageScore 4.0 availability to all approved lenders for eligible loans sold to the two mortgage-finance enterprises.
FHFA’s current policy allows lenders to choose between Classic FICO and VantageScore 4.0 for eligible loans. The agency said on September 30 that the enterprises had adjusted upfront fees to align pricing across those two models. Classic FICO remains approved; FHFA has not announced a retirement date for it, and says FICO 10T is not yet eligible for loan delivery.
VantageScore was developed by Equifax, Experian and TransUnion. Broader lender access and aligned fees create a more direct alternative in a mortgage market where FICO has historically held a central position. The regulatory changes provide important business context for the restructuring, but FICO has not said that the scoring-policy changes caused the job cuts.
Company has not disclosed headcount by function
FICO’s filing describes the plan in terms of organizational layers, operating structure, processes, tools and AI-driven product development, but does not specify whether positions will be removed through layoffs alone or whether other workforce measures are involved. It also does not identify the functions in which reductions will be concentrated.
The company’s stated timeline stretches into fiscal 2027, while employee notifications began in early October 2026. Further details—including a confirmed employee total and any role-specific or geographic breakdown—were not included in the filing or Reuters’ report.
