Samsung is reshuffling its U.S. operations in a big way. The company is cutting jobs in its consumer electronics unit - the part that sells phones, TVs, and home appliances - and moving the main headquarters from New Jersey to Texas.
The numbers paint a clear picture of the shift. According to U.S. Representative Josh Gottheimer, who spoke at the opening of new offices there, Samsung had about 1,200 staff in New Jersey as of September.
It does not stop there. A state notice indicates that Samsung SDS America, an IT services affiliate, could cut 179 additional roles in Ridgefield Park, New Jersey. Samsung attributed those personnel adjustments to the relocation of Samsung SDS' North American headquarters, stating they were unrelated to layoffs or restructuring.
Most affected employees were offered relocation, though some were dismissed. Samsung said in a statement that the changes "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." The company also said the move is intended to foster "stronger collaboration and optimize the organization by bringing more teams together within a growing technology and AI ecosystem."
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This is a story of two Samsung businesses that are moving in completely opposite directions.
The chip division is on fire. Samsung indicated it expects to report a roughly 19-fold increase in second-quarter profit, fueled by robust AI-driven chip demand. Last month, the company revealed plans to pour hundreds of billions of dollars into new chip factories.
But the consumer electronics side is struggling. Samsung's mobile division is projected to record its first loss ever, facing fierce rivalry with Apple. Additionally, Chinese competitors such as TCL and Hisense are pressuring Samsung in TV and home appliance sectors. The AI boom has driven up chip costs, negatively impacting earnings across Samsung's consumer electronics lines.
So Samsung is pulling back on what is not working and doubling down on what is. Moving headquarters to Texas puts the consumer team closer to a major tech hub where companies like Tesla and Oracle have already relocated their own operations. Texas already hosts Samsung's semiconductor plants and a mobile operations center in Plano.
Samsung is not alone in making this kind of trade-off. Microsoft, Amazon, and Meta have cut jobs while reallocating funds to AI infrastructure. Tesla, Oracle, and others have relocated their headquarters or key operations to Texas, which offers lower taxes and a business-friendly environment.
Employees are bracing for more. A current SEA employee mentioned that staff worry the latest job cuts might be followed by more layoffs and a merging of its appliance, home entertainment, and mobile units, as it channels resources into chips. Samsung's statement denied any current broad, global restructuring of its consumer product business.
As of late 2025, Samsung Electronics employed 11,770 people in the U.S., including those in its chip division.
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