Bundles of fibers, wires, or filaments are ubiquitous structures in both natural and artificial materials. We investigate the bundle degradation induced by an external damaging action through a theoretical model describing an assembly of parallel fibers, progressively damaged by a random population of cracks. Fibers in our model interact by means of a lateral linear coupling, thus retaining structural integrity even after substantial damage. Monte Carlo simulations of the Young’s modulus degradation for increasing crack density demonstrate a remarkable scaling shift between an exponential and a power-law regime. Analytical solutions of the model confirm this behavior, and provide a thorough understanding of the underlying physics.