FICO cuts workforce by 15% as part of AI-driven restructuring
FICO•FICO said it would cut about 15% of its workforce as part of a restructuring and AI integration, potentially affecting about 570 employees. It expects about $27 million in pre-tax charges in the fourth quarter of fiscal 2026.
1. Workforce restructuring
FICO said it would trim about 15% of its workforce as part of a broader restructuring and AI integration. The company had 3,811 employees at the end of September 2025, so the cuts could affect about 570 workers; it began notifying employees this week. FICO expects about $27 million in pre-tax charges in the fourth quarter of fiscal 2026, primarily related to severance, and expects the plan to be largely completed by the third quarter of fiscal 2027.
2. Mortgage scoring competition
FICO shares have fallen about 58% this year as US regulators seek to loosen its hold on mortgage credit scoring. The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to allow lenders to use VantageScore, developed by Equifax, Experian and TransUnion, and said the two mortgage finance companies would use a single pricing grid for VantageScore and FICO scores.
