Fair Isaac cuts 15% of workforce and incurs $27 million in charges

Fair Isaac Corporation (FICO) said on Monday that management committed to a plan of workforce reduction on Oct. 1, 2026.

The company said the plan involves eliminating approximately 15% of positions across the company by reducing the number of layers in the organization, simplifying the operating structure, optimizing processes and tools, and integrating AI-driven product development.

Fair Isaac said affected employees were notified beginning the week of Oct. 5, 2026. The company expects the plan to be substantially completed by the end of the third quarter of fiscal 2027.

The company expects to incur aggregate pre-tax charges of approximately $27 million in the fourth quarter of fiscal 2026. These charges consist of employee severance and related costs calculated in accordance with the company's existing severance plan or applicable local statutory requirements.

Fair Isaac said substantially all of these charges are expected to result in future cash expenditures.