Fair Isaac announces 250-worker reduction

Fair Isaac Corp. is the latest Minneapolis-based company to announce layoffs.

The analytics company, best known for its FICO credit score, is eliminating 250 positions worldwide as part of an ongoing reengineering effort. Eighty of the positions announced Wednesday were eliminated in the last three months of 2008. Of the 170 layoffs to come, 30 will affect its 375-person Minnesota workforce.

Chief Executive Mark Greene said he hopes the changes will "protect Fair Isaac's profitability in the face of the global slowdown in financial markets" and "allow us to strengthen our financial and operational performance during this difficult economic environment."

This is the second large layoff for Fair Isaac in two years as it copes with the global credit crisis and the suffering financial-services sector -- Fair Isaac's bread and butter business. The company eliminated 420 jobs in fiscal year 2008 and said that after the new cuts, its global workforce will total 2,100 -- 25 percent less than a year ago. The company is continuing its hiring freeze and modifying undisclosed employee compensation and benefits.

In addition to layoffs, Fair Isaac plans to continue efforts to divest unprofitable business units, consolidate facilities and cut costs in fiscal year 2009.

The latest changes should save $40 million in operating expenses for its fiscal year ending Sept. 30 and result in an $8 million pretax restructuring charge for the first quarter. Results for that quarter will be announced Jan. 28 after the market closes.

Fair Isaac shares, which lost about half their value in 2008, closed Wednesday at $16.64, down 38 cents.