Synopsys to Cut 10% of Workforce, Close Sites in Restructuring — Update

By Connor Hart

Synopsys will lay off about 10% of its workforce and close certain sites as part of a restructuring plan the company said will allow it to invest in the business and drive efficiencies following its recent acquisition of Ansys.

″We are taking a number of targeted steps to improve our efficiency to scale the business, accelerate our strategy and capitalize on the highest-growth opportunities," the chip-software-design company said Wednesday.

The majority of the job cuts will occur during Synopsys' fiscal 2026, which began Nov. 1, the Sunnyvale, Calif., company said. It expects to substantially complete the restructuring by late 2027.

Synopsys declined to share the number of layoffs it expects to conduct. The company had about 20,000 employees at the end of its fiscal 2024, according to its most recent annual filing with the Securities and Exchange Commission. Ansys employed 6,500 people as of the end of last year, regulatory filings show.

Synopsys said it expects to record up to $350 million in pretax charges stemming from the restructuring, mostly consisting of severance and other one-time termination benefits. Some of the costs will additionally stem from site closures, it said.

The restructuring plan follows Synopsys' $35 billion cash-and-stock deal for Ansys. The deal, which was announced in early 2024 and closed in July, expanded the company's reach in simulation software for designers of microchips, cars and airplanes.

Along with Cadence Design Systems, Synopsys is one of two big players providing software that chip designers use to lay out circuitry and test it prior to manufacturing. The deal faced regulatory scrutiny earlier this year, leading both Synopsys and Ansys to divest certain assets to address competition concerns.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

November 12, 2025 12:17 ET (17:17 GMT)