Fair Isaac to cut about 15% of positions, expects $27 million charge

Fair Isaac is cutting roughly 15% of its positions as the company reorganizes around fewer management layers and AI-driven product development.

In a regulatory filing after the close Tuesday, FICO said management committed on Oct. 1 to a workforce-reduction plan that involves eliminating approximately 15% of positions across the company. Affected employees began hearing the news the week of Oct. 5.

The company described the plan as reducing the number of layers in the organization, simplifying its operating structure, optimizing processes and tools, and "integrating AI-driven product development."

FICO expects to record about $27.0 million in pre-tax charges in the fourth quarter of fiscal 2026, consisting of employee severance and related costs. The company said substantially all of those charges are expected to result in future cash spending.

The plan is expected to be substantially complete by the end of the third quarter of fiscal 2027.

The filing did not give a headcount figure or an estimate of annual savings.

FICO shares closed at $695.46 Tuesday, up 0.8%, before the disclosure.

By the numbers

• Positions eliminated: about 15%
• Expected pre-tax charges: about $27.0 million
• Timing of charges: fiscal Q4 2026
• Plan approved by management: Oct. 1, 2026
• Expected completion: end of fiscal Q3 2027

Sources

1. Fair Isaac Corporation Form 8-K (Item 2.05), filed Oct. 6, 2026, accession 0001193125-26-415732

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