Synopsys plans 10pc job cuts after Ansys deal closure

Reuters: Synopsys (SNPS.O), opens new tab will lay off about 10% of its workforce, or roughly 2,000 employees, as the chip-design software maker looks to redirect investment towards growth opportunities, according to a regulatory filing on Wednesday.

 

The move comes after the company completed its $35 billion cash-and-stock acquisition of engineering design firm Ansys earlier this year and missed analysts' estimates for third-quarter revenue in September.

 

Synopsys said it expects to incur pretax charges to its financial results ranging from $300 million to $350 million, covering severance and other one-time termination benefits, as well as costs associated with certain site closures.

 

The company said it expects majority of the workforce reductions in the fiscal year 2026 and to substantially complete the restructuring plan by the end of fiscal 2027.

 

A wave of layoffs has hit global companies this year, with U.S.-based employers cutting more than 150,000 jobs in October, marking the biggest reduction for the month in over 20 years, a report by Challenger, Gray & Christmas said last week.

 

Tech firms led the job cuts in the private sector, followed by retailers and the services sector, the global outplacement company has said.

Synopsys, which counts companies such as Nvidia NVDA.O, Intel (INTC.O), opens new tab and Qualcomm (QCOM.O), opens new tab among its partners, provides software and hardware used to design advanced processors.

 

The company has seen a slowdown in China, largely due to new export restrictions disrupting design starts in the country and challenges at a major foundry customer.

 

In early July, the U.S. lifted restrictions imposed in late May on exports to China for chip design software developers.