Synopsys Targets 10% Workforce Reduction Under Restructuring Plan Launched in 2025
Key Facts
Synopsys’ workforce reduction plan dates to November 2025, when its board approved a restructuring aimed at eliminating about 10% of the workforce recorded at the end of fiscal 2025. The plan therefore is not a new layoff announcement in November 2026, but a measure that began earlier and continued to be implemented in the subsequent period. The company said the restructuring would enable it to invest in key growth opportunities and improve business efficiency following the completion of its acquisition of Ansys. The filing places the reduction target in the context of reorganizing the company after combining complementary design and simulation businesses. It also links the workforce reduction to directing resources toward growth areas identified by management.
Synopsys had about 28 thousand employees at the end of fiscal 2025, the reference size that indicates the scale of the workforce targeted by the plan. The company had recorded growth of about 40% in its total headcount during fiscal 2025, attributing it mainly to the Ansys merger. That expansion reflects the deal’s effect on the company’s size before the announced workforce reduction began. Synopsys and Ansys announced the acquisition agreement on 16 January 2024, valuing the enterprise at about 35 billion dollars based on Synopsys’ closing share price on 21 December 2023. The acquisition was completed on 17 July 2025 and, according to the company, brought together silicon design, intellectual property, simulation and analysis.
In its filing for the quarter ended 31 July 2026, Synopsys said the plan was targeted for completion by the end of fiscal 2027, with most of the workforce reduction to be implemented during fiscal 2026. The company recorded restructuring charges of 2.2 million dollars in the three months ended 31 July 2026. Recorded charges totaled 236.3 million dollars in the nine months ended on the same date. These figures show that most of the charges recorded through that filing had accumulated over the period since the start of the fiscal year. The company had described the plan as having begun in November 2025, making the dates disclosed in the report part of a phased implementation extending into fiscal 2027.
The workforce reduction is part of an integration process that Synopsys said it would support with shared technical capabilities across the two companies’ businesses. Upon completion of the deal, it said it was targeting a total addressable market of 31 billion dollars. It also planned to deliver its first set of integrated capabilities in the first half of 2026, including the integration of multiphysics simulation across an electronic design automation tool suite. This path is part of the rationale for the reorganization, which the company said was intended to improve efficiency and invest in growth opportunities. Management linked its long-term targets to revenue expansion and improved operating margin.
At its investor day on 30 September 2026, Synopsys presented a long-term financial framework targeting annual revenue growth of about 15% from fiscal 2026 to 2030 and an operating margin of about 50% in fiscal 2030. The company also announced its intention to repurchase about 1 billion dollars in shares over the following months, subject to market conditions. In trading, the stock closed at 467.61 dollars on 30 October 2026, compared with a close of 490.19 dollars in the previous session. The price record does not specify the reason for the change between the two sessions. Under the timeline set out by the company in its quarterly report, the plan remains on track for completion by the end of fiscal 2027.