Synopsys will lay off about 10% or roughly 2,000 employees, as the chip-design software maker looks to redirect investment towards growth opportunities, according to a regulatory filing on Wednesday.
The move comes after the company completed its $35 billion cash-and-stock acquisition of engineering design firm Ansys earlier this year and missed analysts’ estimates for third-quarter revenue in September.
Synopsys, which had about 20,000 employees as of fiscal 2024-end, expects to incur pre-tax charges to its financial results ranging from $300 million to $350 million.
These charges will primarily cover severance and other one-time termination benefits for affected employees, as well as costs associated with certain site closures, the company said.