Fair Isaac to axe 250 more jobs

Fair Isaac to axe 250 more jobs

Fair Isaac, the Minneapolis-based provider of credit scoring technology, is cutting 250 jobs worldwide in a bid to reduce operating expenses for 2009 by $40 million.

The cuts, part of the vendor's reengineering programme, come on top of 420 job losses outlined in 2008 in an attempt to boost revenue and reduce costs by $100 million a year.

Fair Issac says 80 of the 250 positions have already been eliminated during the first quarter of fiscal 2009. It expects extra jobs will go "through attrition of non-revenue-producing positions" throughout the year.

This means that by the end of 2009 the company's global workforce will be around 2100, a 25% reduction compared to one year ago.

Some cuts will come from sales and professional services, reflecting, says the firm, the "consolidation in the US banking industry". In addition, finance, legal, human resources and marketing corporate services will all be hit.

As well as job cuts, the firm plans to make savings by consolidating facilities and the "modification" of some employee compensation and benefit programmes.

With banks reluctant to spend in the current environment, the development of new decision management applications will also be put on the back burner "to match market delays in client demand".

The firm will also "sharpen industry focus" on the banking and insurance sector.

Mark Greene, CEO, Fair Isaac, says: "While any staff reductions are painful, we are confident that our ongoing restructuring efforts will allow us to strengthen our financial and operational performance during this difficult economic environment and enable us to continue to invest in our Decision Management strategy for long-term growth."

The firm expects a pre-tax restructuring charge of approximately $8 million in the first quarter of fiscal 2009.

Fair Isaac shares closed down 38 cents, or 2.25%, to $16.54 on Wednesday.

Comments: (1)

Paul Penrose
Paul Penrose - Finextra - London 08 January, 2009, 14:36Be the first to give this comment the thumbs up 0 likes

Did I read that right? Fair Isaac is to put development of new decision management applications on the back-burner "to match market delays in client demand". Times must be really tough. Those Q4 sales figures will make for interesting reading.

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