Samsung Electronics has reduced its workforce in the United States, primarily impacting employees in New Jersey and Texas as the company prepares to relocate its consumer electronics headquarters from Englewood Cliffs, New Jersey, to Texas. According to company statements and insider accounts, 739 roles at Samsung Electronics America (SEA), which handles consumer electronics and excludes the chip division, have been affected by the move.
In Plano, Texas, approximately 100 workers, including some in the mobile division, have been laid off. These cuts come as SEA's consumer electronics divisions face challenges including intense competition and rising chip costs, contrasting with the company's highly profitable chip division, which is benefiting from demand driven by artificial intelligence.
The decision to shift SEA's headquarters to Texas is notable, as employees in New Jersey only moved into new offices less than a year ago. In September, approximately 1,200 workers were employed by SEA in New Jersey, according to U.S. Representative Josh Gottheimer, D-N.J., who attended the opening of the new offices. Documents reviewed by Reuters indicate that some SEA employees were notified of an "enterprise-wide reduction-in-force" on June 30, with a "significant number of impacts."
Exodus of Talent
Social media posts also show over 30 workers, including senior sales and marketing officials in both Texas and New Jersey, as well as some in other U.S. locations, reporting their departures or layoffs over recent weeks. Samsung stated that the headquarters relocation "may lead to changes in our workforce structure, such as employees who are unable to relocate, or certain functions that are optimized to ensure our roles align to key business priorities."
A majority of affected individuals have been offered relocation packages, while others were let go. Samsung's mobile division, in particular, is projected to incur its first-ever loss due to fierce competition from rivals like Apple and Chinese manufacturers in the television and home appliance markets. Elevated chip costs, exacerbated by the AI boom, have also strained earnings across its consumer electronics portfolio.
This wave of job cuts at Samsung mirrors similar actions taken by other major technology firms such as Microsoft, Amazon, and Meta, which have reduced staff while reallocating resources towards AI infrastructure. Samsung is also joining a trend seen with companies like Tesla and Oracle, moving significant operations to Texas, a state known for its favorable tax policies and business environment. Samsung already maintains chip factories and a mobile hub in Plano, Texas.
Concerns linger among Samsung employees that these recent layoffs may foreshadow further reductions and consolidation within the appliance, home entertainment, and mobile divisions, as the company prioritizes its chip business. However, Samsung has stated that no broad, global restructuring is currently underway within its consumer product business.
Strategic Realignment
Samsung Electronics anticipates a substantial increase in its second-quarter profit, driven by strong demand for AI-related chips, and has announced plans for extensive investments in new chip manufacturing facilities. The relocation of SEA's headquarters is intended to foster enhanced collaboration and optimize the organization by integrating more teams within a growing technology and AI ecosystem. As of the end of 2025, Samsung Electronics employed 11,770 individuals in the U.S., a figure that includes its chip division workforce.
Separately, Samsung SDS America, the company's IT services affiliate, has indicated that 179 roles at its Ridgefield Park, New Jersey, location could be eliminated. This notice, issued in June as required by New Jersey law, is attributed to the relocation of Samsung SDS's North American headquarters and is reportedly unrelated to layoffs or broader restructuring efforts.