Samsung Electronics has cut jobs across its US display, phone, and other consumer electronics operations, affecting workers primarily in New Jersey and Texas, as the South Korean tech giant relocates its American headquarters — a move that highlights the sharply contrasting fortunes between its booming AI-driven chip business and its struggling consumer electronics units.
The Numbers
Samsung confirmed in a Sunday statement to Reuters that 739 roles at its Englewood Cliffs, New Jersey campus have been affected by the relocation of Samsung Electronics America (SEA) — the division focused on consumer electronics, which does not include the company's semiconductor business. Documents seen by Reuters show the unit notified some employees on June 30 of an "enterprise-wide reduction-in-force," describing "a significant number of impacts." LinkedIn posts reviewed by Reuters showed more than 30 workers, including senior sales and marketing officials in both Texas and New Jersey, along with a few in other U.S. locations, saying they had been let go or left the company in recent weeks.
The Relocation Behind the Cuts
The layoffs stem from Samsung's decision to move its US headquarters from Englewood Cliffs, New Jersey, to Plano, Texas, by the end of 2026 — the second time in less than a year the company has relocated its American nerve center. Samsung notified employees of the decision on May 29 and issued a formal statement June 1, less than eight months after holding a grand opening celebration at its new Englewood Cliffs campus on September 22, 2025, an event attended by state and local officials who praised the investment as a sign of Samsung's long-term commitment to New Jersey.
Roughly 1,000 workers at the Englewood Cliffs campus now face a choice: relocate to Texas or lose their jobs. In its statement, Samsung said the shift "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."
Why Texas
The consolidation aligns Samsung's American corporate leadership with its largest US manufacturing investments: an established semiconductor fab in Austin, a new advanced foundry in Taylor scheduled to begin operations by the end of 2026, and an existing mobile and network business campus already in Plano. Texas also offers substantially lower operating costs and no corporate income tax, compared to New Jersey's 11.5% rate — the highest in the nation. Samsung framed the move as part of a broader "business transformation designed to better position our organization for long-term growth," saying the transition is "intended to strengthen alignment across teams and offices, and sharpen our focus on the areas that will drive the greatest impact for our customers, partners and business."
Part of a Broader Tech Relocation Trend
Samsung's move to Texas follows a pattern set by other major companies, including Tesla and Oracle, which have both relocated corporate operations to the state in recent years, drawn by its business-friendly regulatory environment and lower tax burden. With these job cuts, Samsung also joins Microsoft, Amazon, and Meta Platforms in trimming staff even while significantly increasing AI-related spending — a dynamic increasingly common across the tech industry as companies shift resources toward AI infrastructure while paring back in other areas. Samsung has stated that no broad global restructuring is currently underway, framing the New Jersey cuts as specific to the SEA consolidation rather than a company-wide reduction.
A Tale of Two Samsungs
The layoffs underscore a stark divergence within Samsung's business. While its consumer electronics divisions — including mobile, display, and other legacy product lines — face job cuts and reorganization, the company's semiconductor business has been thriving amid surging AI-driven demand for memory chips, with Samsung and rival SK Hynix both riding a historic memory supercycle throughout 2026. That contrast has become a defining theme for the broader industry this year, as chip-focused units post record profits while consumer-facing hardware businesses navigate a tougher competitive and cost environment.
What's Next
With the Plano headquarters transition expected to be completed by the end of 2026, additional details about the scope of affected roles and support provided to displaced employees are likely to emerge as the relocation progresses. Samsung has said it will provide support to those affected by the changes, though the precise scale of the broader workforce impact beyond the confirmed 739 New Jersey roles remains unclear.