[News] Synopsys Reportedly to Slash 10% of Workforce After $35 Billion Ansys Acquisition

The tech layoff wave has reached Synopsys, the EDA heavyweight powering much of the world’s chip design. As noted by Reuters, the company plans to cut about 10% of its workforce, roughly 2,000 employees, as it shifts investment toward new growth areas, according to a regulatory filing released on Wednesday.

Reuters points out that the decision follows Synopsys’ completion of its $35 billion cash-and-stock acquisition of engineering design firm Ansys earlier this year, as well as the company’s miss on analysts’ third-quarter revenue estimates in September. Most of the layoffs will take place in Synopsys’ fiscal 2026, which started on Nov. 1, with the company aiming to finish the restructuring by late FY27, as Wall Street Journal indicates.

Synopsys said it expects to take up to $350 million in pretax charges related to the restructuring, largely tied to severance and other one-time termination expenses. The Wall Street Journal adds that a portion of the costs will also come from closing certain company sites.

Synopsys’ acquisition of Ansys also drew regulatory scrutiny earlier this year, prompting both companies to divest certain assets to address competition concerns, Wall Street Journal notes. The deal, which was announced in early 2024 and closed in July, expanded Synopsys’ presence in simulation software used by designers of microchips, cars, and airplanes, the report adds.

According to TrendForce, in the 2025 global EDA market forecast, Cadence is projected to hold a 32% share, followed by Synopsys at 30% and Siemens at 13%, with the remaining 25% held by other players.

Rising Legal Scrutiny and Executive Shake-Up

Meanwhile, according to Ad Hoc News, several major law firms have launched class-action lawsuits accusing Synopsys of misleading investors about the condition of its design IP business. The complaints point to a gap between the company’s promises and the costly customizations customers required, a discrepancy that allegedly eroded the business model’s scalable profitability. Compounding the pressure, Investing.com reports that Synopsys announced on November 4 that Rick Mahoney has stepped down as chief revenue officer, effective immediately.

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(Photo credit: Synopsys)