Samsung Electronics has cut jobs in its US consumer electronics business, affecting workers in its display, mobile phone and other consumer electronics divisions. The job cuts mainly affected employees in New Jersey and Texas.
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Reuters said these job cuts at Samsung Electronics America had not been reported before. Samsung said the headquarters move may change its workforce because some employees may not relocate and some job functions are being reorganized. Samsung said these changes are meant to better match its business priorities. The layoffs highlight the different performance of Samsung’s businesses.
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Samsung is also joining companies like Tesla and Oracle in expanding operations in Texas. Texas is considered attractive because of lower taxes and business-friendly rules. Texas already has Samsung’s chip manufacturing plants and its mobile business hub in Plano. One current Samsung Electronics America employee told Reuters that workers are worried more layoffs could happen.
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Samsung’s chip division is performing very well because of strong demand for AI chips. At the same time, Samsung’s consumer electronics business is facing pressure because chip costs have become much higher. Samsung recently said it expects its second-quarter profit to jump about 19 times compared with last year, mainly because of AI-driven chip demand, according to Reuters. The company also announced plans last month to invest hundreds of billions of dollars in new chip plants.
Samsung’s mobile business is expected to report its first-ever loss. The mobile division is facing tough competition from Apple. Samsung is also facing stronger competition from Chinese companies like TCL and Hisense in televisions and home appliances. Higher chip prices linked to the AI boom have hurt profits across Samsung’s consumer electronics products. Samsung’s move surprised many because employees in New Jersey had shifted into a new office less than a year ago.
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Samsung Electronics America (SEA), which handles Samsung’s consumer electronics business in the US, is moving its headquarters from New Jersey to Texas, Samsung told Reuters. Samsung said 739 jobs in Englewood Cliffs, New Jersey, have been affected because of the headquarters move, according to the company’s statement. Samsung clarified that Samsung Electronics America does not include its chip business. The company said most affected employees have been offered relocation to Texas.
Samsung also confirmed that some workers who could not relocate were let go. Around 100 employees at Samsung’s Plano, Texas office have also lost their jobs, including workers from its mobile division, according to one person affected by the layoffs who spoke to Reuters. The source requested anonymity because the matter is sensitive. There is no definite total number of layoffs across Samsung Electronics America.
About 1,200 Samsung Electronics America employees work in New Jersey, according to a press release from the US Representative Josh Gottheimer cited by Reuters. Josh Gottheimer had attended the opening of Samsung’s new New Jersey office in September. Samsung’s latest layoffs are similar to job cuts made by other major technology companies. Companies such as Microsoft, Amazon and Meta have also reduced staff while spending more money on AI infrastructure.
The employee also said there are concerns that Samsung could combine its appliance, home entertainment and mobile businesses as it shifts more resources to chips, according to Reuters. Samsung denied that it is carrying out a broad global restructuring of its consumer electronics business. The company said moving its headquarters is meant to improve teamwork and bring employees closer together in a growing technology and AI ecosystem.
Samsung Electronics had 11,770 employees in the United States at the end of 2025, including workers in its chip business. Separately, Samsung’s IT services unit, Samsung SDS America, has notified New Jersey authorities that 179 positions could be affected in Ridgefield Park, according to Reuters. Samsung said those changes at Samsung SDS America are linked only to the relocation of its North American headquarters and are not part of layoffs or restructuring.
