Fair Isaac to Cut 200 Jobs in Restructuring

Fair Isaac Corporation, the leading provider of analytics and decision management technology, today announced details of a restructuring plan designed to accelerate growth. The restructuring initiative, initially outlined on the company’s second-quarter 2006 earnings call, is focused on enabling accelerated growth in both core and new markets, with both established and new clients. Key components include a shift from a product-centric to a client-centric go-to-market model, closer integration of sales and consulting functions, a market-driven innovation philosophy and expanded leverage of global product development resources.

As part of the restructuring, Fair Isaac has identified and is eliminating approximately 200 now redundant positions in product management, delivery and development functions. These actions are forecasted to yield annualized pre-tax savings of $24 million, with one-time severance and related costs of $5.7 million.

“Achieving our EDM vision requires a client-focused, relationship-based approach that creates clear, differentiated value for our clients and industries,” said Tom Grudnowski, CEO of Fair Isaac. “We believe this initiative will stimulate faster growth and enhance profitability through smarter resource alignment, more market-focused innovation and ultimately, stronger client service delivery.”

Specific organizational changes include:

• Establishment of Integrated Client Networks (ICNs), groupings or segment of clients with similar needs, such as those in a common industry, business profile or geography. While the financial services industry has been divided into multiple ICNs, others focus exclusively on a single industry (for example, telecommunications) or geography.
• Within ICNs, the creation of consulting-focused client partner roles. Client partners will be responsible for linking the unique decision needs of each client to Fair Isaac’s core EDM applications and capabilities in analytics, data management and software development.
• Adoption of a new Chief Marketing Officer role designed to oversee the company’s go-to-market strategy and process, proposal optimization, customer satisfaction measures and highly integrated marketing initiatives.
• Integration of the company’s world-class EDM Applications through enhanced product roadmaps, product definitions and packaged deliverables.
• Creation of a new EDM Technology and Custom Solutions group to leverage EDM software tools in new decision areas, deliver domain and solution experts to work with clients, create new bundled solutions and build EDM methodologies to support large-scale sales and delivery of EDM solutions.
• Transition of targeted engineering, quality assurance and maintenance functions to the company’s major development center in Bangalore, India.