2,800 employees face layoffs as tech giant cuts 10% of workforce after $35B merger

Thousands of employees are facing layoffs as tech giant Synopsys cuts 10% of its workforce following a $35 billion merger with engineering design firm Ansys .

The company disclosed the layoffs to the Securities and Exchange Commission on Nov. 9, according to federal documents .

Synopsys' Board of Directors approved "a restructuring plan that is expected to result in the termination of approximately 10% of Synopsys' workforce as of fiscal 2025 year-end."

According to its website , Synopsys has approximately 28,000 employees as of Nov. 13 — meaning a 10% cut would result in roughly 2,800 layoffs.

Synopsys has approximately 28,000 employees as of Nov. 13, according to its website , meaning a 10% cut would affect roughly 2,800 workers.

"This restructuring will allow Synopsys to invest in key growth opportunities and drive business efficiencies following the completion of its acquisition of ANSYS Inc.," the notice reads .

"Synopsys expects a majority of the workforce reductions in fiscal year 2026 and to substantially complete the Restructuring Plan by the end of fiscal year 2027, subject to local law and consultation requirements."

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The move comes just four months after Synopsys completed its acquisition of Ansys in July for $35 billion .

"The transaction, which was announced on Jan. 16, 2024, combines leaders in silicon design, IP and simulation and analysis to enable customers to rapidly innovate AI-powered products," the company said of the acquisition .

"Synopsys is now positioned to win in an expanded $31 billion total addressable market."

Synopsys President and CEO Sassine Ghazi called the merger a "transformational milestone" for the company and said that with Ansys' team, the company can "maximize the capabilities of engineering teams broadly."

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The company said it expects to take pre-tax charges of between $300 million and $350 million, including severance and site-closure costs.

Additionally, the company plans to complete most layoffs in FY 2026, though layoffs have already begun this month.

Layoff notices have been issued for the following California facilities:

• 172 employees at 675 Almanor Ave., Sunnyvale

• one employee at 800 N. Mary Ave., Sunnyvale

• one employee at 770 N. Mary Ave., Sunnyvale

• one employee at 655 Palomar Ave., Sunnyvale

• 17 employees at 4010 Ocean Ranch Blvd., Oceanside

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