Samsung Cuts US Jobs, Offers Relocations Ahead of Texas HQ Move

Samsung Electronics America (SEA) is trimming its US consumer electronics workforce as it prepares a cross-country headquarters move. The company has cut jobs at its US display, smartphones, and other consumer electronics operations, affecting workers mainly in New Jersey and Texas, per Reuters.

The South Korean giant confirmed in a statement Sunday that 739 roles at its Englewood Cliffs, New Jersey, office have been affected as it shifts its headquarters to Texas. Reports note that a WARN notice tied to the move covers more than 60% of roughly SEA’s 1,200-person New Jersey workforce.

What’s Happening at Englewood Cliffs and Plano

Reuters reports most affected New Jersey employees received relocation offers, while others were laid off outright; Samsung did not provide further details.

At SEA’s Plano, Texas office, about 100 employees, including mobile division staff, were laid off, according to a worker who spoke anonymously due to the sensitivity of the matter.

LinkedIn posts reviewed by Reuters also show more than 30 employees, including senior sales and marketing officials in Texas and New Jersey, saying they were laid off or left the company in recent weeks.

Tom’s Hardware notes the Englewood Cliffs campus opened only last September, replacing Samsung’s Ridgefield Park headquarters after more than three decades, and says internal documents show employees were notified of an enterprise-wide reduction in force on June 30. 

Samsung’s Explanation and Employee Concerns

Samsung told Reuters the headquarters shift may lead to changes in workforce structure, pointing specifically to employees who are unable to relocate. 

Tom’s Hardware reports the company separately described the move as intended to foster stronger collaboration and optimize the organization, while stating there’s no broad global restructuring currently underway across its consumer products business. 

Even so, a current SEA employee told Reuters that workers are worried about further cuts and a possible consolidation of the appliance, home entertainment, and mobile divisions as Samsung concentrates more resources on chips. 

Adding to that unease, Tom’s Hardware notes Samsung’s IT services affiliate, Samsung SDS America, separately warned in June that up to 179 roles could be cut in Ridgefield Park.

A Tale of Two Samsungs: Chips Surge, Consumer Electronics Struggle

The layoffs highlight a widening divide within Samsung. The cuts reflect contrasting fortunes, with the chip division posting record profits while consumer electronics struggles with rising chip costs. 

Samsung recently reported a 19-fold jump in second-quarter profit driven by AI-fueled chip demand and announced plans to invest hundreds of billions of dollars in new chip plants.

Tom’s Hardware reports the chip division generated a preliminary $58.5 billion in second-quarter operating profit, putting Samsung on pace to earn more in 2026 than in its previous 40 years of semiconductor operations.

Meanwhile, the mobile division is expected to post its first quarterly loss as competition from Apple intensifies and memory prices continue to affect global consumer electronics. 

The move to Texas will also place Samsung’s consumer electronics business alongside its existing chip operations, including two fabs in Austin, the delayed Taylor fab, and its mobile hub in Plano.

Source: Samsung cuts US jobs, offers relocations ahead of HQ move