Samsung Electronics America cutting hundreds of jobs in Texas HQ move

Samsung Electronics America said Sunday that 739 roles astatine its Englewood Cliffs, New Jersey field person been affected by its planned determination of the user electronics unit's office to Texas. A bulk of those workers received relocation offers, though others were fto go, the institution said without specifying numbers.

At Samsung Electronics America's Plano, Texas office, astir 100 workers — among them employees successful the mobile part — mislaid their jobs, Reuters reported, based connected radical with nonstop cognition of the situation. Samsung Electronics America, known arsenic SEA, handles the company's user electronics operations successful the United States and is abstracted from its semiconductor business.

The 739 fig comes from a Worker Adjustment and Retraining Notification filed with New Jersey, according to The Next Web. SEA employs astir 1,200 workers successful New Jersey, meaning the affected roles correspond adjacent to 62% of the site's workforce. Internal documents reviewed by Reuters amusement the institution informed employees connected June 30 that it was carrying retired an "enterprise-wide reduction-in-force" with a "significant fig of impacts."

"This process whitethorn pb to changes successful our workforce structure, specified arsenic employees who are incapable to relocate, oregon definite functions that are optimized to guarantee our roles align to cardinal concern priorities," Samsung said successful a statement.

Samsung's IT services affiliate Samsung SDS America separately flagged that 179 roles could beryllium chopped astatine Ridgefield Park, New Jersey, successful a June announcement filed nether authorities law. Samsung said those changes were tied to a relocation of Samsung SDS America's North American office and were unrelated to layoffs oregon restructuring.

The occupation cuts travel little than a twelvemonth aft Samsung announced successful June that it would determination SEA's office from Englewood Cliffs to its existing field successful Plano by the extremity of 2026, and little than a twelvemonth aft it held a nationalist opening of its New Jersey offices successful September. New Jersey officials and concern groups criticized the determination astatine the time, with immoderate pointing to Texas's little taxes and business-friendly regulations arsenic a draw.

The cuts bespeak a stark disagreement wrong the broader Samsung organization. Samsung's spot concern is projected to present an astir 19-fold surge successful second-quarter nett connected the backmost of AI demand, adjacent arsenic the mobile part braces for what would beryllium its archetypal recorded quarterly loss. Across SEA's user electronics lineup, rising spot prices person squeezed margins, portion Apple presses the institution successful smartphones and Chinese manufacturers specified arsenic TCL and Hisense vie aggressively successful televisions and location appliances.