Silicon Valley chip design software leader Synopsys has announced plans to cut approximately 10% of its global workforce following the completion of its $35 billion acquisition of Ansys, marking one of the largest layoffs in the semiconductor software industry this year. The restructuring aims to streamline operations and eliminate redundancies created by the merger.

Strategic Move Post $35 Billion Merger

The acquisition of Ansys, a leading provider of engineering simulation software, was finalized earlier this month after securing regulatory approval from U.S., European, and Chinese authorities. Synopsys stated that the integration will help it expand its design automation capabilities, particularly in areas like chip simulation, AI-driven design, and system verification. However, overlapping roles between the two companies have made staff reductions inevitable.

Job Cuts to Affect Thousands Worldwide

According to reports, the 10% workforce reduction could affect over 2,000 employees globally, impacting teams across engineering, sales, and administrative functions. While Synopsys has not disclosed specific regions or departments that will face layoffs, insiders suggest the cuts will occur in both Synopsys and Ansys divisions as part of a broader cost optimization effort.

Focus on Integration and Innovation

In an internal memo to employees, Synopsys CEO Sassine Ghazi emphasized that the restructuring is “a necessary step to build a stronger, more integrated Synopsys-Ansys ecosystem.” He added that the company remains committed to innovation in semiconductor design automation, AI-based chip development, and simulation software — areas expected to drive growth in the post-merger phase.

Industry Reactions and Future Outlook

Analysts view the layoffs as a short-term correction to ensure long-term operational efficiency. The integration of Ansys is expected to enhance Synopsys’s leadership in EDA (Electronic Design Automation) and expand its reach into system-level simulation markets, putting it in direct competition with Cadence Design Systems and Siemens EDA. Despite the job cuts, investors remain optimistic, with Synopsys shares rising slightly after the announcement.