Samsung cuts US jobs, offers relocations ahead of headquarters move

Samsung Electronics has cut jobs at its U.S. display, phone and other consumer electronics operations, affecting workers mainly in New Jersey and Texas, according to documents and two people familiar with the matter.

A Samsung Electronics logo and a computer motherboard appear in this illustration taken Aug. 25, 2025

The South Korean tech giant said in a statement to Reuters that 739 roles in Englewood Cliffs, New Jersey, have been affected by plans by Samsung Electronics America (SEA) – which focuses on consumer electronics and does not include chips – to move its headquarters to Texas.

A majority of affected employees have received relocation offers, but others were let go, the company said without elaborating.

At SEA's Plano, Texas, office, about 100 workers, including staff in its mobile division, have been laid off, according to one person who said they were among the affected employees. Sources declined to be identified because of the sensitivity of the matter.

The cuts, though related to the headquarters relocation, underscore diverging fortunes within the South Korean tech giant, with its chip division surging to record profit while its consumer electronics units struggle as chip costs rise.

Samsung's decision to move SEA's headquarters is notable because employees in New Jersey moved into new offices less than a year ago. SEA employs about 1,200 workers in New Jersey, according to a press release by U.S. Representative Josh Gottheimer, who attended an event marking the opening of the new offices in September.

While the precise extent of the layoffs at SEA could not be determined, documents reviewed by Reuters show the unit notified some employees on June 30 of an "enterprise-wide reduction-in-force," adding that there were a "significant number of impacts."

LinkedIn posts reviewed by Reuters also show that more than 30 workers, including senior sales and marketing officials in Texas and New Jersey, as well as a few in other U.S. locations, said they had been laid off or left the company over the past several weeks.

Details of the job cuts at SEA have not previously been reported.

Samsung said the relocation of SEA's headquarters "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."

Chip division soars, mobile unit may post loss

Samsung has said it will likely post a 19-fold jump in second-quarter profit, driven by strong AI-related chip demand. It also announced plans last month to invest hundreds of billions of dollars in new chip plants.

Its mobile division, however, is expected to post its first-ever loss as it faces intense competition from Apple. Chinese rivals including TCL and Hisense are also challenging Samsung in televisions and home appliances. Higher chip costs resulting from the AI boom have weighed on earnings across its consumer electronics products.

Samsung's job cuts mirror moves by other global firms, including Microsoft, Amazon and Meta, which have reduced headcount while redirecting spending toward AI infrastructure.

The company has also joined Tesla, Oracle and other technology firms in moving headquarters or major operations to Texas, which is known for lower taxes and business-friendly regulations. The state is already home to Samsung's chip factories and a mobile hub in Plano.

Samsung employees are concerned the recent job cuts could be followed by additional layoffs and a consolidation of the company's appliance, home entertainment and mobile divisions as it shifts resources toward chips, a current SEA employee said.

Samsung said there is currently no broad global restructuring underway within its consumer products business.

The relocation of the unit's headquarters is intended to foster "stronger collaboration and optimize the organization by bringing more teams together within a growing technology and AI ecosystem," the company said.

Samsung Electronics had 11,770 employees in the United States as of the end of 2025, including workers in its chip division.

Samsung's IT services affiliate Samsung SDS America has also indicated that 179 roles could be cut in Ridgefield Park, New Jersey, according to a June notice required under state law.

Samsung said those personnel changes are due to the relocation of Samsung SDS' North American headquarters and are unrelated to layoffs or restructuring.