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Samsung Electronics has cut hundreds of jobs in the US as it shifts the headquarters of its consumer electronics business from New Jersey to Texas.
The restructuring affects employees across the company's display, smartphone and other consumer electronics businesses. The largest impact has been in New Jersey, with additional layoffs reported in Texas.
In a statement to Reuters, Samsung said that 739 roles at its Englewood Cliffs, New Jersey, office have been affected by the relocation of Samsung Electronics America (SEA). It clarified that SEA oversees its consumer electronics business and does not include its semiconductor division.
The company stated that a majority of the affected employees have been offered relocation opportunities, while others have been laid off. It did not disclose how many workers accepted or received those offers.
The job cuts also reached Samsung's Plano, Texas, office, where around 100 employees, including members of the mobile division, were laid off, according to a person familiar with the matter. The sources spoke on condition of anonymity as they were not authorised to discuss the issue publicly.
Documents reviewed by Reuters show employees were informed on June 30 about an ‘enterprise-wide reduction-in-force’, which the company said would have a ‘significant number of impacts.’
It also shows more than 30 employees, including senior sales and marketing executives from Texas, New Jersey and other US locations, have recently left the company.
The layoffs come as Samsung's consumer electronics business faces slowing growth, higher costs and stronger competition, even as its semiconductor division continues to benefit from demand for AI chips.
Samsung has projected a 19-fold increase in second-quarter profit, driven by strong AI chip demand. Last month, it also announced plans to invest hundreds of billions of dollars in new semiconductor plants.
Its consumer electronics business, however, remains under pressure. The mobile division is expected to report its first-ever loss, while Apple continues to dominate the premium smartphone market.
Chinese brands TCL and Hisense have also expanded their presence in the television and home appliances segments. Higher chip costs linked to the AI boom have further squeezed margins.
Also Read: Did Meta Use AI to Decide on Layoffs? Company Responds
The headquarters relocation comes less than a year after Samsung opened its new office in Englewood Cliffs. According to a press release issued by US Representative Josh Gottheimer during the inauguration last September, the company employs about 1,200 people in New Jersey.
Samsung stated that the move is intended to “foster stronger collaboration and optimize the organization by bringing more teams together within a growing technology and AI ecosystem.” It also said that there is no broad global restructuring underway within its consumer products business.
The company joins firms such as Tesla and Oracle in expanding operations in Texas. The restructuring also follows workforce reductions at Microsoft, Amazon and Meta as major technology companies continue to shift spending towards AI infrastructure.
