Credit-scoring giant FICO is cutting around 15 per cent of its workforce as the company restructures its operations and integrates artificial intelligence into product development.
The job cuts could affect roughly 570 workers, based on FICO's reported workforce of 3,811 employees at the end of September 2025. Employees began being notified about the reductions this week, Reuters reported.
FICO, formally known as Fair Isaac Corporation, said the restructuring is intended to simplify its operating structure, reduce organisational layers, optimise processes and tools, and integrate AI-driven product development.
The company expects the restructuring to be substantially completed by the third quarter of fiscal 2027.
FICO Cuts 15% of Its Workforce
FICO's latest workforce reduction represents one of the company's largest restructuring moves in recent years. The company expects to incur approximately $27 million in pre-tax charges during the fourth quarter of fiscal 2026, primarily related to employee severance and associated costs.
The cuts are part of a broader effort to simplify how FICO operates while changing how it develops and delivers products.
Rather than describing the reductions solely as an AI replacement programme, FICO's regulatory filing links the workforce plan to several changes, including fewer organisational layers, streamlined processes and the integration of AI into product development.
Why Is FICO Restructuring Around AI?
Artificial intelligence has become an increasingly important part of FICO's technology strategy. The company develops analytics and decision-management products used by organisations to automate and improve decisions involving areas such as credit risk, fraud and customer management.
FICO says its decision-management solutions are used by clients in 80 countries, while its consumer-facing services include myFICO, which provides access to credit information and related tools, according to Reuters.
The latest restructuring indicates that AI is being incorporated into the company's product-development processes as FICO attempts to simplify operations and accelerate innovation. However, the company has not said that all of the positions being eliminated are being directly replaced by AI systems.
FICO Faces a Changing Credit-Scoring Market
The workforce reduction comes as FICO faces a changing competitive landscape in the US credit-scoring industry.
FICO has historically played a major role in mortgage lending through its widely used credit scores. But rival VantageScore is gaining a more prominent position after the Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to allow lenders to use VantageScore alongside FICO scores.
The FHFA also moved towards a unified pricing structure for the two scoring systems, increasing competitive pressure on FICO. The developments have added to investor concerns around FICO's future position in the mortgage-credit market.
FICO Shares Under Pressure
FICO's restructuring comes after a difficult period for the company's stock. Shares have fallen sharply this year as investors assess the impact of increased competition and changes in the mortgage-credit market. Reuters reported that the stock had fallen around 58 per cent this year as of Tuesday.
The company is therefore attempting to reduce organisational complexity and incorporate AI into its product development at a time when its traditional position in the credit-scoring market is facing greater competition.
AI Reshapes Tech Jobs
FICO's workforce reduction adds to a growing list of companies restructuring their operations around artificial intelligence. Across technology and financial services, businesses have increasingly turned to AI to automate processes, develop products and improve operational efficiency. Some companies are reducing headcount as they make those changes, although the reasons vary between organisations.
In FICO's case, the company has explicitly connected the restructuring to AI-driven product development as well as broader efforts to simplify its structure and optimise processes.
The company expects the workforce-reduction plan to be substantially completed by the third quarter of fiscal 2027, with the immediate job notifications beginning this week.
