Fair Isaac to Cut About 15% of Workforce as Competition Intensifies -- Update

By Stephen Nakrosis Fair Isaac said it will reduce its workforce by about 15%, a move that comes as the company behind the FICO credit score has faced new competitive pressure. Fair Isaac said the job cuts will reduce the number of layers in the organization and simplify its operating structure. The plan also involves integrating an artificial intelligence-driven product development process. The company expects to incur pre-tax charges of about $27 million in the fourth quarter, consisting of employee severance and related costs. Fair Isaac started notifying affected workers this week, and expects its plan to be substantially completed by the end of the third quarter of fiscal 2027. The company came under pressure this year after two U.S. government's mortgage agencies, Fannie Mae and Freddie Mac, said they would allow borrowers to use alternate credit scores to apply for loans. In April, mortgage agency Fannie Mae said that it would allow lenders to use VantageScore, a FICO, immediately. Freddie Mac at the time said it would also begin accepting mortgage loans assessed using VantageScore in a limited rollout. The company has also been a frequent target of Federal Housing Fi