GoKawiilWhat just happened? Samsung is cutting hundreds of jobs from its US consumer electronics business as it prepares to move the division's headquarters from New Jersey to Texas. The restructuring comes as the company's semiconductor operation is generating record profits from the AI boom, while the divisions selling phones, TVs, and appliances are struggling with the resulting surge in chip prices.
Samsung Electronics America said 739 roles at its Englewood Cliffs, New Jersey, offices have been affected by the relocation. The majority of those workers have been offered positions in Texas, though others have been laid off. Around 100 employees at Samsung's Plano, Texas, site, including staff from the mobile division, have also reportedly lost their jobs.
Samsung Electronics America employs about 1,200 people in the state of New Jersey, meaning the 739 affected roles represent more than 60% of its local workforce. Internal documents sent to employees on June 30 described an enterprise-wide reduction in force with a significant number of impacts.
Surprisingly, employees only moved into the Englewood Cliffs offices last September. The facility replaced Samsung's former Ridgefield Park headquarters, which had served the Korean giant since 1992.
Samsung said the Texas move is designed to bring more teams together, improve collaboration, and align jobs with its priorities. The company insists there is no broad global restructuring underway in its consumer products business. However, employees are reportedly concerned that more cuts could follow, alongside a possible consolidation of the appliance, home entertainment, and mobile divisions.
The layoffs highlight the increasingly paradoxical situation inside Samsung. Its memory business is benefiting enormously from hyperscalers buying almost every advanced chip they can obtain. Samsung expects second-quarter operating profit to reach 89.4 trillion won, around $58.4 billion, almost 19 times the figure from a year earlier.
It was recently reported that Samsung expects to earn more profit in 2026 than its semiconductor division generated during the previous 40 years combined. Its chip profit jumped almost 50-fold year-over-year during the first quarter, accounting for around 94% of the company's total operating profit.
The same AI-driven shortage is hurting Samsung's consumer products. Rising DRAM and NAND prices are increasing the cost of building smartphones and other electronics, and Samsung's mobile division could post its first-ever loss despite strong Galaxy S26 sales. Competition from Apple in phones and Chinese brands such as TCL and Hisense in televisions and appliances has added further pressure.
Samsung employed 11,770 people in the United States at the end of 2025, including staff in its semiconductor division. Its US chip operations already have a substantial Texas presence, including facilities in Austin and Taylor, while Plano serves as a mobile hub.