en.Wedoany.com Reported - Two sources familiar with the matter and documents obtained by Reuters show that Samsung Electronics has implemented layoffs in its U.S. display, mobile phone, and other consumer electronics business divisions, with affected employees primarily located in New Jersey and Texas.
Samsung stated in a press release that 739 positions in Englewood Cliffs, New Jersey, are affected by the planned relocation of its U.S. consumer electronics business headquarters (Samsung Electronics America, SEA) to Texas. SEA focuses on consumer electronics and does not include the chip division. The statement added that most affected employees have received relocation offers, but some have been laid off, without providing specific details. A person claiming to be a laid-off employee said that about 100 employees, including those from the mobile division, have been let go at SEA's office in Plano, Texas.
Although the layoffs are related to the headquarters relocation, they highlight the divergent performance of Samsung's different business segments: its chip division has seen profits surge to record levels, while the consumer electronics business has languished due to soaring chip costs. Samsung's decision to relocate SEA's headquarters is noteworthy because less than a year ago, SEA's New Jersey employees had just moved into a new office with great fanfare. According to a press release from U.S. Representative Josh Gottheimer, SEA has about 1,200 employees in New Jersey, and he attended the opening ceremony of the new office in September.
Documents reviewed by Reuters show that SEA notified some employees on June 30 of a "company-wide layoff," stating that "a significant number of employees are affected." Posts on LinkedIn also indicate that more than 30 employees, including senior sales and marketing officials in Texas and New Jersey, as well as a few employees in other parts of the U.S., said they have been laid off or left the company in the past few weeks. Samsung explained in its statement that the SEA headquarters relocation "may lead to changes in the employee structure, such as employees unable to relocate, or adjustments to certain functions to optimize and ensure roles align with key business priorities."
Samsung has forecast that its second-quarter profit could increase 19-fold, driven by strong demand for chips powered by artificial intelligence. Last month, it also announced plans to invest hundreds of billions of dollars in new chip factories. However, its mobile division is expected to post its first-ever loss, facing fierce competition from Apple. Chinese rivals such as TCL and Hisense are also challenging Samsung in the TV and home appliance sectors. Higher chip costs driven by the AI boom have dragged down profitability across all consumer electronics products. Samsung's layoffs mirror actions by global companies like Microsoft, Amazon, and Meta, which have cut jobs while shifting spending toward AI infrastructure. Samsung has also joined tech companies like Tesla and Oracle in relocating headquarters or major operations to Texas, known for its low taxes and business-friendly regulations. The state already hosts a Samsung chip factory and a Plano mobile center.
