Samsung Electronics has cut jobs in its US divisions specialising in displays, mobile phones and other consumer electronics, following the relocation of Samsung Electronics America’s headquarters from New Jersey to Texas. The company told Reuters that the changes affected 739 jobs in Englewood Cliffs; most employees were offered the opportunity to relocate, whilst others left the company.
Briefly about the main points
- The relocation of SEA’s headquarters to Texas has affected 739 jobs in New Jersey.
- Samsung has stated that most employees have been offered relocation.
- A Reuters source has reported that around 100 people have been made redundant in Plano.
- The job cuts are taking place against a backdrop of rising chip costs.
- Samsung denies that it is carrying out a large-scale global restructuring of its consumer business.
Relocation following the recent opening of the office
Samsung Electronics America, or SEA, is involved in consumer electronics and does not encompass the group’s chip business. According to Samsung, the relocation of its headquarters to Texas may result in changes to its workforce: some staff will be unable to relocate, whilst the company intends to streamline certain functions in line with its business priorities.
Back in September, SEA opened a new office in Englewood Cliffs. According to a statement issued at the time by the office of a member of the US House of Representatives Josh Gottheimer, there were around 1,200 SEA staff working in New Jersey.
The redundancies also affected the Texas office
Around 100 employees, including staff from the mobile division, have been made redundant at SEA’s office in Plano, Texas, a source who identified themselves as one of those made redundant told Reuters. Documents seen by the agency show that on 30 June, the division informed some of its staff of a company-wide redundancy programme affecting a «significant number» of employees.
Reuters also reviewed LinkedIn posts by more than 30 employees from Texas, New Jersey and several other locations in the US. They reported having been made redundant or having left the company over the past few weeks.
The contrast between chips and consumer electronics
The job cuts are taking place at a time when Samsung’s chip division is forecast by the company to increase its quarterly profit 19-fold, driven by demand for artificial intelligence components. Last month Samsung It also announced its intention to invest hundreds of billions of dollars in new chip manufacturing plants.
At the same time, the consumer electronics divisions are under pressure due to higher chip prices and competition. Samsung’s mobile business is expected to post its first loss, whilst in the TV and home appliance sectors the company is competing, in particular, with TCL and Hisense. This may indicate a reallocation of resources within the group in favour of faster-growing segments.
Texas as the new hub for US operations
Samsung explained that the move is intended to strengthen collaboration between teams and optimise its operations within Texas’s burgeoning technology and AI ecosystem. The state is already home to Samsung’s chip manufacturing plants and its mobile hub in Plano.
The company has stated that it is not currently undertaking any major global restructuring of its consumer products business. As at the end of 2025, Samsung Electronics had 11,770 employees in the US, including its chip division.
