Synopsys Announces Layoffs Impacting 2,000 Employees Post-Ansys Acquisition

BENGALURU, India — Synopsys Inc. will lay off about 10% of its workforce, amounting to roughly 2,000 employees, as the chip-design software company looks to direct its investments towards growth opportunities. The announcement was made in a regulatory filing on Wednesday, November 12, 2025.

This workforce reduction comes shortly after Synopsys completed its $35 billion cash-and-stock acquisition of engineering design firm Ansys earlier this year. The company missed analysts’ expectations for its third-quarter revenue earlier in September, reporting $1.74 billion compared to the anticipated $1.77 billion.

In the regulatory filing, Synopsys outlined that it expects pretax charges between $300 million and $350 million. These costs will cover severance, one-time termination benefits, and expenses related to site closures. The majority of the layoffs are planned for fiscal year 2026, and the restructuring is expected to be largely complete by the end of fiscal 2027.

The current wave of layoffs in the tech sector marks a significant increase, with U.S.-based employers cutting over 150,000 jobs in October alone — the largest monthly reduction in more than two decades, according to a report by Challenger, Gray & Christmas. Technology firms have led these job cuts, followed by the retail and service sectors.

Synopsys, which collaborates with major partners like Nvidia, Intel, and Qualcomm, provides software and hardware crucial for designing advanced processors. The company recently faced challenges in the Chinese market due to new export restrictions that disrupted design activity and complications with a key foundry customer. In early July, the U.S. lifted some of these restrictions on exports to China.

The layoffs reflect broader trends in the tech industry, where many companies have recently downsized to cope with economic pressures and focus on integrating recent acquisitions amid a changing landscape.