Samsung Electronics has laid off hundreds of employees in its United States consumer electronics business as part of a headquarters relocation from New Jersey to Texas, amid mounting pressure on its mobile and home appliance divisions.
The South Korean technology giant said Samsung Electronics America (SEA) would relocate its headquarters to Texas, a move affecting 739 positions in Englewood Cliffs, New Jersey.
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The company said most affected employees had been offered relocation packages, while others were laid off.
In Plano, Texas, about 100 employees, including workers in Samsung’s mobile division, were also dismissed, according to a source familiar with the development.
Samsung said the relocation could lead to workforce changes involving employees unable to relocate and the restructuring of certain functions to align with business priorities.
Documents cited by Reuters indicated that affected employees were informed on June 30 of an enterprise-wide workforce reduction that would have a significant impact on staff.
Several employees also disclosed their departures through posts on LinkedIn, including senior sales and marketing executives based in Texas and New Jersey.
The layoffs come despite Samsung’s semiconductor division recording strong growth driven by rising global demand for artificial intelligence (AI) chips.
The company recently projected a 19-fold increase in second-quarter profit, supported by booming AI-related chip sales, and announced plans to invest hundreds of billions of dollars in expanding chip manufacturing.
However, Samsung’s consumer electronics business continues to struggle with higher semiconductor costs and increasing competition.
Its mobile division is expected to record its first-ever operating loss as it faces stiff competition from Apple, while Chinese brands, including TCL and Hisense, continue to gain market share in the television and home appliance segments.
Industry observers say the contrasting performance highlights Samsung’s growing reliance on its semiconductor business as consumer electronics revenues weaken.
Samsung denied reports of a broader global restructuring, insisting there was no company-wide overhaul of its consumer products division.
According to the company, relocating its U.S. headquarters is intended to improve collaboration and strengthen operations within Texas’ expanding technology and AI ecosystem.
Texas has increasingly attracted major technology companies due to its lower taxes and business-friendly environment, with firms such as Tesla and Oracle also relocating significant operations to the state.
Samsung already operates semiconductor manufacturing facilities in Texas, alongside its mobile operations hub in Plano.
As of the end of 2025, Samsung Electronics employed about 11,770 workers across the United States, including staff in its semiconductor business.
Meanwhile, Samsung SDS America, the company’s IT services affiliate, has also notified authorities that 179 positions could be affected by the relocation of its North American headquarters, although Samsung said the move was unrelated to layoffs or corporate restructuring.
