Core Viewpoint - Synopsys plans to lay off approximately 10% of its workforce, around 2,000 employees, to reallocate resources to faster-growing areas following disappointing financial results and a recent acquisition [2][4]. Group 1: Financial Performance - Synopsys reported third-quarter adjusted earnings per share of $3.39, below the market expectation of $3.74, with sales of $1.73 billion, also below the expected $1.76 billion, but showing a year-on-year growth of 14% [2]. - The company anticipates adjusted earnings per share between $2.76 and $2.80, significantly lower than the expected $4.51, while projected sales are between $2.23 billion and $2.26 billion, exceeding the expected $2.09 billion [3]. Group 2: Restructuring and Costs - The restructuring plan approved by Synopsys' board is expected to incur pre-tax costs of $300 million to $350 million, primarily related to severance pay, one-time termination benefits, and costs associated with the closure of specific locations [4]. - Most layoffs are expected to be completed by the end of the 2026 fiscal year, with the restructuring plan anticipated to be largely finalized by the end of the 2027 fiscal year, subject to local laws and consultation requirements [4]. Group 3: Market Challenges - Synopsys has faced challenges due to a decline in sales from its design IP business, concerns surrounding its artificial intelligence strategy, and geopolitical factors, particularly regarding China, which have negatively impacted its stock price [3]. - The company's stock has fallen 18% year-to-date, with at least two of the last three quarters failing to meet revenue and adjusted earnings expectations [2].