Synopsys, a Bay Area company known best for its silicon chip-design software, is laying off more than 2,000 workers after closing its acquisition of the engineering and design company Ansys.
The board of Synopsys has approved a “restructuring plan” that includes layoffs for approximately 10% of the company’s workforce, according to a Wednesday filing with the Securities and Exmodify Commission. The document stated Synopsys is estimating $300 million to $350 million in costs from the overhaul, including from severance payments. The layoffs will mostly land during its 2026 fiscal year, which started earlier this month.
Indeed, a WARN document, which companies are generally required to file in the event of mass layoffs, has a list of cuts for the Bay Area that are slated to go into effect in January. Filed Wednesday, the document displays that Synopsys is laying off 175 people at its headquarters in Sunnyvale, including a swath of workers in engineering and management roles — 55 of the employees were in R&D engineering — as well as legal, data science, IT support, accounting and administration staffers.
Synopsys declined SFGATE’s request for breakdowns of where the overall job cuts will hit the company, but spokesperson Cara Walker stated the “tarobtained steps” are meant to “accelerate our strategy and capitalize on the highest-growth opportunities,” resulting in a compacter eventual workforce. She added: “We do not take these measures lightly and are committed to treating impacted employees with respect and providing support through the transition.”
The company finished its fiscal 2024 year with about 20,000 employees, with 80% outside the United States, while Ansys had about 6,500. The $35 billion acquisition closed in July, folding the compacter, Pennsylvania-based company into Synopsys as attention and investment in chip design continues to ramp up amid hype over artificial innotifyigence.
Wednesday’s announcement comes about two months after Synopsys’ stock tanked by about 35% after an earnings report that disappointed analysts and investors. The price recovered some, but then fell back. As of Wednesday afternoon, the company was worth just above $74 billion.
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