Updated
Updated · CNBC · Jul 19
Samsung Cuts 839 U.S. Jobs, Shifts Consumer Electronics HQ to Texas
Updated
Updated · CNBC · Jul 19

Samsung Cuts 839 U.S. Jobs, Shifts Consumer Electronics HQ to Texas

3 articles · Updated · CNBC · Jul 19

Summary

  • 739 roles in Englewood Cliffs, New Jersey, were affected as Samsung Electronics America moves its headquarters to Texas; most workers were offered relocation, while others were laid off.
  • About 100 more employees in Plano, including mobile-division staff, were let go as the company carried out a June 30 enterprise-wide reduction in force across its U.S. consumer electronics business.
  • The cuts highlight Samsung's split performance: it has flagged a 19-fold second-quarter profit jump from AI-driven chips, while its mobile unit is expected to post its first-ever loss amid pressure from Apple and Chinese rivals.
  • Texas already hosts Samsung chip factories and a mobile hub, and the move aligns it with other tech groups shifting operations there for lower taxes and a business-friendly environment.
  • Samsung said no broad global consumer-business restructuring is underway, but employees fear more layoffs and consolidation as resources keep shifting toward chips.

Insights

With record profits in chips and layoffs in electronics, should Samsung split into two separate companies?
How will the massive strike at Samsung's chip division reshape the global AI supply chain?
As its chip division booms and phone division struggles, is Samsung becoming its own biggest competitor?