Samsung Electronics is cutting jobs at its U.S. consumer electronics operations, affecting hundreds of workers in New Jersey and Texas.
The South Korean tech giant confirmed that 739 roles in Englewood Cliffs, New Jersey, are impacted as Samsung Electronics America prepares to relocate its headquarters to Texas. Many affected employees have received relocation offers, while others have been let go. An additional 100 workers, including mobile division staff, were laid off at Samsung's Plano, Texas office.
These workforce changes highlight a stark divide within the company. Samsung's chip division is poised for a massive profit surge driven by strong AI demand. In contrast, its consumer electronics units, including mobile and home appliances, are struggling with rising chip costs and intense competition from Apple and Chinese rivals like TCL and Hisense.
The relocation comes less than a year after Samsung celebrated moving into new New Jersey offices. The company states the move to Texas, which already hosts its chip factories and a mobile hub, is intended to foster collaboration within the state's growing technology ecosystem. This aligns with a broader trend of tech firms like Oracle and Tesla relocating operations to Texas for its business-friendly environment.
Employees are concerned the current cuts signal further consolidation, with resources being shifted to the more profitable chip division. Samsung states there is no broad global restructuring of its consumer business at this time.