Fair Isaac Cuts 15 Percent of Workforce to Integrate AI

Fair Isaac, the credit-scoring company known as FICO, announced Tuesday that it is cutting approximately 15 percent of its workforce. The layoffs, which could affect about 570 workers based on September 2025 data, are part of a restructuring effort to automate tasks and integrate artificial intelligence to accelerate innovation. The company expects to complete the plan by the third quarter of fiscal 2027 and anticipates $27 million in pre-tax severance charges during the fourth quarter of fiscal 2026.

The restructuring follows a 58 percent decline in the company's share price this year, triggered by increased regulatory pressure. The Federal Housing Finance Agency recently directed mortgage finance giants Fannie Mae and Freddie Mac to allow the use of VantageScore, a rival credit scoring model. Additionally, the agency mandated the adoption of a single pricing grid for both services, directly challenging the long-standing dominance of Fair Isaac in the mortgage lending market.