Fair Isaac Corp (NYSE: FICO), the company behind the FICO credit score, is eliminating about 15% of its positions in a restructuring that flattens the organization and brings in “AI-driven product development,” according to a regulatory filing dated Tuesday.
Management locked in the plan on October 1 and began sending notices the week of October 5. FICO expects the bulk of the work to wrap up by fiscal Q3 2027, which closes in June 2027, at a pre-tax cost near $27 million for severance and related expenses.
A 15% cut of the 3,811 people FICO employed on September 30, 2025, per its latest annual report, works out to roughly 570 jobs. The company hasn’t said which teams or locations the cuts hit.
Sponsored · Selkirk Copper Mines
The filing doesn’t mention FICO’s mortgage business, but the cuts follow a rough stretch for the stock. VantageScore 4.0 got a major opening late on September 3, when the Federal Housing Finance Agency, under Director Bill Pulte, ordered Fannie Mae and Freddie Mac to accept it from every lender. FICO shares fell roughly 17% the next day.
On September 29, Pulte said Fannie and Freddie would price loans on “ONE PRICING GRID” that places VantageScore alongside Classic FICO. Shares sank about 27% that day, their steepest daily fall since 1989, then rebounded 11% on October 1. They rose less than 1% after Tuesday’s filing but remain down about 58% this year.
