Samsung plans to cut hundreds of jobs in its U.S. consumer electronics division and shift the business headquarters from New Jersey to Texas. The move comes as its semiconductor unit continues to benefit from strong AI-driven demand and record earnings.
According to Samsung Electronics America, 739 positions at its Englewood Cliffs, New Jersey, offices are affected by the headquarters move. Most employees were offered jobs in Texas, while others were laid off. Reports also say that about 100 workers at the company’s Plano, Texas, office, including mobile division staff, have lost their jobs.
The workforce reduction in New Jersey is significant. Samsung Electronics America has approximately 1,200 employees in the state, with the 739 affected positions accounting for more than 60% of its local workforce. Internal documents sent to employees on June 30 referred to the changes as an enterprise-wide reduction in force with broad impacts.
What makes the move more surprising is that employees only settled into the Englewood Cliffs office last September. The building had replaced Samsung’s longtime headquarters in Ridgefield Park, which had been home to its U.S. consumer business since 1992.
Samsung said relocating the division to Texas will bring teams closer together, strengthen collaboration, and better align its workforce with business priorities. The company said the move is not part of a broader global restructuring of its consumer products business. Even so, employees reportedly remain concerned that more layoffs could follow, along with a potential merger of the appliance, home entertainment, and mobile divisions.
While its consumer electronics division is shrinking, demand for its memory chips is stronger than ever, with hyperscale customers buying almost every advanced chip the company can produce. Samsung expects second-quarter operating profit of 89.4 trillion won, or roughly $58.4 billion, nearly 19 times last year’s level. Reports also say the company could make more money in 2026 than its chip business earned during the previous 40 years combined. In the first quarter alone, semiconductor profits jumped nearly 50 times from a year earlier and made up about 94% of total operating profit.
Ironically, the AI boom helping Samsung’s chip business is making life tougher for its consumer products. As DRAM and NAND prices climb, smartphones and other devices are becoming more expensive to produce. Even with healthy Galaxy S26 sales, the mobile division could be headed for its first-ever loss. Samsung is also facing stiff competition from Apple in phones and from TCL and Hisense in TVs and appliances.
Samsung had 11,770 employees in the United States at the end of 2025, including its semiconductor workforce. The company already has a significant presence in Texas, with chip facilities in Austin and Taylor, while its Plano campus serves as a key hub for the mobile business.
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