Samsung Electronics has implemented workforce reductions centered on its U.S. consumer electronics business operations.

The measures were taken within Samsung Electronics America (SEA) organization, which handles consumer products including displays, smartphones, and home appliances, with employees primarily in New Jersey and Texas areas being affected.

▲ 739 Jobs Affected by Texas Headquarters Relocation

Samsung Electronics stated in a statement provided to Reuters on the 19th (local time) that 739 positions in the Englewood Cliffs area of New Jersey were affected as Samsung Electronics America, which handles consumer electronics business, relocated its headquarters from New Jersey to Texas.

The organization operates separately from the semiconductor business division as a consumer electronics sector.

The company explained that it provided relocation opportunities to Texas for the majority of affected employees.

However, some employees were excluded from relocation and left the company, though the exact number was not disclosed.

▲ Approximately 100 Employees Cut at Plano, Texas Office

According to Reuters, approximately 100 employees departed from the Plano, Texas office.

This included employees from the mobile business division.

The information was confirmed through terminated employees and multiple sources, who requested anonymity citing the sensitivity of the matter.

▲ Temperature Gap Between Semiconductor Boom and Consumer Electronics Slump

This workforce adjustment has been evaluated as an example showing the performance gap between different business divisions within Samsung Electronics, going beyond a simple headquarters relocation.

While the semiconductor business is recording record-level profitability driven by expanding AI demand, the consumer electronics sector is seeing deteriorating profitability due to rising semiconductor prices and intensified market competition.

▲ New Jersey Headquarters Relocated Less Than a Year Ago

This headquarters relocation is drawing even more attention because Samsung Electronics America held a large-scale event last September and officially announced the move to its new facility in New Jersey. U.S. Representative Josh Gottheimer attended the event, and approximately 1,200 employees were reported to work at the New Jersey facility.

According to internal documents confirmed by Reuters, Samsung Electronics America notified some employees on June 30 of an "enterprise-wide reduction-in-force" plan.

The company is reported to have informed that the measures would affect a significant number of employees.

According to LinkedIn posts, more than 30 employees working in various regions across the U.S., including Texas and New Jersey, left the company in the past two weeks.

Among them were senior executives in sales and marketing divisions.

Samsung Electronics explained that some job adjustments were unavoidable due to the headquarters relocation, as some employees would have difficulty relocating or due to organizational efficiency improvements.

The company emphasized that it is a process of reorganizing the organization in line with core business priorities.

Samsung Electronics [Provided by Yonhapnews]Samsung Electronics [Provided by Yonhapnews]

▲ AI Semiconductors Boom… Mobile Business Forecasts Losses

Samsung Electronics projected that its second quarter operating profit this year would increase approximately 19-fold year-over-year, driven by increased demand for AI semiconductors.

Last month, the company also announced investment plans worth hundreds of billions of dollars for constructing new semiconductor production facilities.

Conversely, the mobile business faces the possibility of recording its first-ever loss due to intensified competition with Apple and increased cost burdens.

In the TV and home appliance markets, the offensive from Chinese companies such as TCL and Hisense is intensifying, putting pressure on the profitability of the entire consumer electronics business.

▲ Similar to Global Big Tech Strategies

Samsung Electronics' workforce adjustment has been evaluated as similar to the strategies of global IT companies that are reducing costs in existing businesses to expand AI investments.

Microsoft, Amazon, Meta, and others are also concurrently reducing workforce and expanding AI infrastructure investments.

The company has also joined the trend of relocating headquarters and core organizations to Texas, which offers tax incentives and a business-friendly environment, similar to major technology companies like Tesla and Oracle.

▲ Potential for Additional Organizational Integration Noted

Concerns have been raised within the company that this workforce reduction may not be a one-time measure.

Some employees anticipate that home appliance, home entertainment, and mobile business organizations may be further consolidated in the future, and that resource reallocation focused on semiconductors will accelerate further.

However, Samsung Electronics drew a line, stating that major global-scale restructuring of the consumer electronics business is not currently underway.

▲ Emphasis on Headquarters Relocation for Enhanced Collaboration

Samsung Electronics explained that the purpose of the headquarters relocation is to bring multiple organizations together in one location within the growing AI and technology ecosystem to strengthen collaboration and improve organizational operational efficiency.

As of the end of 2025, the company employs a total of 11,770 employees in the United States, including the semiconductor business.

Samsung SDS America, Samsung Electronics' IT service subsidiary, also reported the possibility of maximum 179 job changes following the relocation of its North American headquarters from Ridgefield Park, New Jersey.

Samsung stated that the measures are merely personnel transition procedures due to the headquarters relocation and are unrelated to restructuring or layoffs.