Synopsys Inc Synopsys (SNPS) is making a big bet on its future—and it’s costing about 2,000 employees their jobs. The chip-design software maker said it plans to cut roughly 10% of its workforce to redirect resources toward what it calls "higher-growth areas." That’s the corporate way of saying some parts of the business are growing faster than others, and the company wants to put more money and people there.

This isn’t happening in a vacuum. Synopsys just completed a massive $35 billion cash-and-stock deal to buy engineering design firm Ansys earlier this year. Big acquisitions often lead to restructuring, as companies look to eliminate overlap and focus on the most promising parts of the combined business. The job cuts also come after Synopsys missed Wall Street’s revenue estimates for the third quarter, reported back in September.

At the end of its last fiscal year, Synopsys employed around 20,000 people. Cutting 10% of that means saying goodbye to roughly 2,000 employees. The company expects to take a pre-tax charge of $300 million to $350 million for the move, mostly to cover severance, termination benefits, and costs related to closing some offices.

Investors haven’t been thrilled with Synopsys lately. The stock is down about 18% since the start of the year, after the company missed both revenue and adjusted earnings per share estimates in at least two of the last three quarters. In its September report, Synopsys posted adjusted earnings per share of $3.39, below the consensus estimate of $3.74. Sales came in at $1.73 billion, also missing the $1.76 billion analysts were expecting, though that still represented a 14% increase from a year earlier.

Looking ahead, the company sees adjusted earnings per share between $2.76 and $2.80 for the current quarter, well below the consensus estimate of $4.51. It expects sales between $2.23 billion and $2.26 billion, which is actually above the consensus estimate of $2.09 billion.

Synopsys makes most of its money by selling software, intellectual property, and services used to design and test integrated circuits and electronic systems. Lately, sales in its design IP business have declined, and the company has faced concerns about the impact of its AI strategy and geopolitical factors, especially in China. That’s put pressure on the stock.

Despite the job cut news, shares of Synopsys were up 1.11% at $399.98 in recent trading. Sometimes the market likes it when a company takes decisive action, even if that action is painful for employees. The thinking goes: if you’re not growing as fast as you’d like, maybe you need to trim the fat and focus on what’s working.