Synopsys plans 10% job cuts after Ansys deal closure

Core Viewpoint - Synopsys is laying off approximately 10% of its workforce, equating to around 2,000 employees, to redirect investments towards growth opportunities following a significant acquisition and disappointing revenue results [1][2]. Group 1: Workforce Reduction - The company anticipates pretax charges between $300 million to $350 million related to severance, termination benefits, and site closures due to the layoffs [2]. - The majority of the workforce reductions are expected to occur in fiscal year 2026, with the restructuring plan projected to be substantially completed by the end of fiscal 2027 [2]. Group 2: Market Context - A significant wave of layoffs has affected global companies, with U.S.-based employers cutting over 150,000 jobs in October, marking the largest reduction for that month in over 20 years [3]. - The technology sector has been at the forefront of these job cuts, followed by retail and services [3]. Group 3: Company Performance and Challenges - Synopsys, which partners with major companies like Nvidia, Intel, and Qualcomm, provides software and hardware for advanced processor design [4]. - The company has experienced a slowdown in China due to new export restrictions affecting design starts and challenges with a major foundry customer [4]. - In July, the U.S. lifted previous restrictions on exports to China for chip design software developers, which may impact future operations [4].