The short answer
FICO, the company behind the FICO credit score, is cutting about 15% of its positions, according to an 8-K it filed on October 6, 2026, and a statement it gave Reuters the same day. FICO did not say how many people that is. Reuters estimated about 570 workers, based on the 3,811 employees FICO had at the end of September 2025. The company expects about $27 million in pre-tax charges, mainly for severance, per the 8-K.
What happened
FICO's parent, Fair Isaac Corporation, filed an 8-K with the SEC on October 6, 2026, signed by CFO Steven P. Weber. An 8-K is a form a public company files when something important happens between its regular reports. The filing says management approved the plan on October 1, 2026, and that it eliminates approximately 15% of positions across the company. FICO confirmed the restructuring in a statement to Reuters on Tuesday, October 6. Reuters reported that the company did not say how many employees would be laid off.
Reuters also noted in its report that FICO shares had fallen about 58% in 2026 and that, in September, the Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to let all lenders use VantageScore, a rival score. FICO's filing and statement did not link the cuts to either.
Who is affected
The 8-K says the cuts cover positions across the company. Neither the filing nor FICO's statement to Reuters named teams, offices or countries. Fair Isaac is headquartered in Bozeman, Montana, per the 8-K. Reuters' estimate of about 570 people is Reuters' own calculation from the September 2025 headcount, and FICO has not confirmed it.
When it takes effect
Affected employees began being notified the week of October 5, 2026, per the 8-K and Reuters. The 8-K says the plan is expected to be substantially complete by the end of the third quarter of FICO's fiscal 2027.
What the company said
In the 8-K, FICO said the plan reduces the number of layers in the organization, simplifies its operating structure, optimizes processes and tools, and integrates AI-driven product development. In its statement to Reuters, FICO said: "This simplified structure will allow us to operate and bring innovations to market faster."
Severance and support
FICO expects about $27 million in pre-tax charges in the fourth quarter of its fiscal 2026, per the 8-K. The filing says the charges cover employee severance and related costs, calculated under the company's existing severance plan or local legal requirements, and that substantially all of it will be paid in cash. FICO has not published the severance terms for individual employees.
Questions people ask
How many people is FICO laying off?
FICO said about 15% of positions across the company, per its October 6, 2026 8-K, but gave no headcount. Reuters estimated about 570 workers from the 3,811 employees FICO reported at the end of September 2025, and FICO did not confirm that number.
When do the FICO layoffs happen?
Notifications began the week of October 5, 2026, per the 8-K and Reuters. The 8-K says the plan should be substantially complete by the end of the third quarter of fiscal 2027.
What reason did FICO give?
The 8-K says the plan cuts organizational layers, simplifies the operating structure, improves processes and tools, and integrates AI-driven product development. FICO told Reuters the simpler structure would let it bring innovations to market faster.
Is FICO paying severance?
The 8-K says FICO expects about $27 million in charges, mainly for severance and related costs, paid under its existing severance plan or local legal requirements. The company has not published the terms for individual employees.