Synopsys, the maker of chip-design software, will trim its workforce by about 10 per cent, which will impact about 2,000 employees. The company reportedly plans to focus on investing in areas with growth potential. Most of the headcount reduction will take place in 2026 with the restructuring exercise to conclude by the end of financial year 2027.
Interestingly, Synopsys, a firm that offers software and hardware for the designing of processors, acquired Ansys, an engineering design firm in a cash-and-stock deal worth $35 billion this year and performed lower than expected in terms of revenues in the September quarter. With the acquisition, Synopsys strengthened its position as one of the two leading players—alongside Cadence Design Systems—in the electronic design automation (EDA) software space. However, the company’s September-quarter revenues fell short of expectations, prompting leadership to realign priorities and streamline its global operations.
As it closes down some sites and lets employees go, the company is likely to spend $300 to $350 million in pretax charges, including severance and other benefits. The company had about 20,000 employees at the end of fiscal 2024, according to its annual filing with the U.S. Securities and Exchange Commission.
Nvidia, Intel and Qualcomm are some of Synopsys’ partner brands. Due to the trade restrictions, Synopsys had taken a major hit in China.
The company reportedly had a workforce comprising about 20,000 employees at the end of the financial year 2024.
