Samsung cuts jobs in the US and gives relocations before moving its headquarters
Samsung Electronics has cut jobs at its U.S. display, phone, and other consumer electronics factories. Most of the workers who lost their jobs are in New Jersey and Texas, according to documents and two people with knowledge of the situation.
In an email to Reuters on Sunday, the South Korean tech giant said that plans by Samsung Electronics America (SEA), which makes consumer goods but not chips, to move its headquarters to Texas have affected 739 jobs in Englewood Cliffs, New Jersey.
It also said without giving more details that some of the affected people were fired while others were given offers to move.
One person who worked at SEA’s Plano, Texas, office said that they were one of the 100 people who were fThe layoffs includecludes staff in the company’s mobile business. Sources would rather not be named because the problem was too sensitive.
Even though the cuts are linked to moving the company’s headquarters, they show how the company’s fortunes are completely unique. For example, the chip division is making record profits, but the consumer electronics units are struggling as chip costs rise.
It’s intriguing that Samsung wants to move SEA’s headquarters because SEA workers in New Jersey just moved to new offices with a lot of fanfare less than a year ago. U.S. Representative Josh Gottheimer said in a news release that SEA has about 1,200 employees in New Jersey. He was at an event in September to celebrate the opening of the new offices.
It was not possible to find out how many people were laid off at SEA, but documents seen by Reuters show that the unit told some employees on June 30 that there would be a “enterprise-wide reduction-in-force” with “a significant number of impacts.”
Reuters also looked at LinkedIn posts and found that more than 30 employees, including top sales and marketing officials in Texas and New Jersey and a few others in other U.S. cities, said they were fired or left the company in the past two weeks.
No prior information has been shared about the SEA job losses.
When Samsung said that SEA’s headquarters would be moving, it said that it “may lead to changes in our workforce structure, such as employees who are unable to relocate or certain functions that are optimized to make sure our roles are aligned with key business priorities.”
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Samsung has said that strong demand for AI chips will likely cause its second-quarter profit to jump by a factor of 19. It also said last month that it would spend hundreds of billions of dollars building new chip plants.
Its mobile division, on the other hand, is likely to report its first loss ever, as Apple gives it a lot of competition. In the TV and home appliance markets, Samsung is also up against Chinese competitors like TCL and Hisense. Because of the AI boom, chip prices have gone up, which has hurt all of its consumer electronics profits.
Other global companies, like Microsoft, Amazon, and Meta, have also cut jobs while putting more money into AI infrastructure. Samsung’s move is similar.
It has also moved its offices or major operations to Texas, which is known for having low taxes and rules that are good for business. Other tech companies that have done the same include Tesla and Oracle. Samsung already has chip plants in the state, and Plano is home to a phone hub.
As the company focuses on chips, a current SEA employee said that workers are worried that the recent layoffs could be followed by more cuts and the merging of the company’s appliance, home entertainment, and mobile divisions.
In its statement, Samsung said that there were no major world changes happening in its consumer products business right now.
The move of the unit’s headquarters is meant to increase “stronger collaboration and optimize the organization by bringing more teams together within a growing technology and AI ecosystem,” the statement said.
As of the end of 2025, Samsung Electronics had 11,770 employees in the United States. This number includes people who work in its chip business.
A June notice mandated by state laws indicates that Ridgefield Park, New Jersey, may see a reduction of 179 jobs. The notice was sent out by Samsung SDS America, an IT services affiliate of Samsung.
Samsung attributed the staff changes to the relocation of Samsung SDS’s North American offices, clarifying that they were unrelated to firings or reorganizing.
