Samsung relocates consumer electronics HQ, trims US jobs amid mobile business woes

Samsung's phone, display and other consumer electronics operations in the US could soon witness workforce reductions affecting locations such as New Jersey and Texas, according to a Reuters report.

According to a statement from the South Korean giant cited by Reuters, around 739 roles at Samsung Electronics America (SEA) in Englewood Cliffs, New Jersey, have been affected by the company's decision to relocate its consumer electronics headquarters to Texas. Samsung Electronics America oversees the company's consumer electronics business and does not include its semiconductor operations.

Meanwhile, around 100 employees at SEA's Plano, Texas, office, including staff in the mobile division, have reportedly been laid off. A majority of the employees affected by the headquarters relocation have also been offered relocation packages. The changes come as Samsung's semiconductor business continues to thrive, while its consumer electronics division faces mounting pressure from rising chip costs.

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A series of LinkedIn posts reviewed by Reuters also showed that more than 30 employees, including senior sales and marketing executives across Texas, New Jersey and several other US locations, have been laid off over the past couple of weeks.

Chips division gains, mobile business lags behind

Samsung is expected to post a 19-fold jump in second-quarter profit, driven by strong demand for memory chips. The company has also announced plans to invest hundreds of billions of dollars in new semiconductor manufacturing facilities.

However, Samsung's mobile business is expected to report its first-ever operating loss, as it faces mounting competition from Apple. Chinese brands such as TCL and Hisense have also been gaining market share in the television and home appliance segments. At the same time, rising semiconductor costs driven by the AI boom have weighed on profitability across Samsung's consumer electronics portfolio.

Samsung's workforce reductions mirror a broader trend across the technology industry, with companies including Microsoft, Amazon and Meta trimming jobs while increasing investments in AI infrastructure.

The company has also joined firms such as Tesla and Oracle in expanding its presence in Texas, attracted by the state's lower taxes and business-friendly policies. Samsung already operates semiconductor manufacturing plants in Texas and maintains a mobile business hub in Plano.

According to a current Samsung Electronics America employee, workers are concerned that the latest round of job cuts could be followed by further layoffs and a possible consolidation of the company's mobile, home entertainment and appliance businesses as Samsung shifts more resources toward its semiconductor operations.

Samsung, however, said there is no company-wide restructuring underway within its consumer products division. It added that relocating the business unit's headquarters is intended to improve collaboration and bring more teams together within a growing technology and AI ecosystem.

As of the end of 2025, Samsung Electronics employed 11,770 people in the United States, including workers in its semiconductor business.

Separately, Samsung's IT services subsidiary, Samsung SDS America, has notified New Jersey authorities that 179 positions at its Ridgefield Park office could be affected. The company clarified that these personnel changes are related to the relocation of Samsung SDS' North American headquarters and are not part of layoffs or a broader restructuring effort.