Employers & Industry
Fair Isaac Corporation, the company behind FICO credit scores, plans to eliminate about 15% of its positions in a workforce reduction it began communicating to employees this week.
In a Form 8-K filed with the Securities and Exchange Commission on October 6, the company said management committed to the plan on October 1. The filing describes four aims: “reducing the number of layers in the organization, simplifying the operating structure, optimizing processes and tools, and integrating AI-driven product development.” It says affected employees were notified beginning the week of October 5, 2026.
How large is the cut?
The filing gives a percentage, “approximately 15% of positions across the Company,” but not a number of jobs.
FICO’s most recent quarterly report listed 3,876 employees as of June 30, 2026. Applied to that total, 15% would be roughly 580 positions. That is an estimate based on the company’s own headcount, not a figure FICO has disclosed.
The company’s annual report for fiscal 2025 said FICO employed 3,811 people across 28 countries as of September 30, 2025. About 35% were based in the United States, 40% in India and 7% in the United Kingdom. The 8-K does not say which countries, offices or functions the cuts affect.
Timeline and cost
FICO expects the plan to be “substantially completed by the end of the third quarter of fiscal 2027.” The company’s fiscal year ends September 30, so that quarter ends in June 2027.
The company expects pre-tax charges of about $27.0 million, consisting of employee severance and related costs, to be recorded in the fourth quarter of fiscal 2026. It said substantially all of those charges are expected to result in future cash spending.
A second round in about a year
This is not FICO’s first recent reduction. Its fiscal 2025 annual report said the company eliminated 226 positions in fiscal 2025, recording $10.9 million in employee separation costs. The same report said FICO had no restructuring charges in fiscal 2024 or 2023.
In a statement reported by Reuters, FICO said: “This simplified structure will allow us to operate and bring innovations to market faster and create more value for our customers.”
Why it matters for workers
FICO’s filing lists AI-driven product development alongside fewer management layers and simpler processes as part of the plan behind a smaller workforce. The filing does not say how many roles, if any, are being replaced by AI tools. It also does not say whether FICO plans to hire into other areas.
What to watch: whether FICO discloses a headcount figure or affected locations in its fiscal 2026 annual report, and whether any state layoff notices are filed for U.S. sites.
Sources
- Fair Isaac Corporation, Form 8-K (Item 2.05, Costs Associated with Exit or Disposal Activities), filed October 6, 2026. https://www.sec.gov/Archives/edgar/data/814547/000119312526415732/d127042d8k.htm
- Fair Isaac Corporation, Form 10-Q for the quarter ended June 30, 2026 (employees at quarter end). https://www.sec.gov/Archives/edgar/data/814547/000081454726000030/fico-20260630.htm
- Fair Isaac Corporation, Form 10-K for the fiscal year ended September 30, 2025 (employees; fiscal 2025 restructuring). https://www.sec.gov/Archives/edgar/data/814547/000081454725000030/fico-20250930.htm
- Reuters, via The Star, October 7, 2026 (FICO statement). https://www.thestar.com.my/tech/tech-news/2026/10/07/fico-cuts-workforce-by-15-in-ai-driven-restructuring
Featured photo: A FICO office building in San Jose, California, photographed in 2020. Representative image of the company; FICO did not say which locations the cuts affect. Photo: Coolcaesar, via Wikimedia Commons (CC BY-SA 4.0). Cropped from the original.
