Last Updated:July 19, 2026, 17:43 IST
Samsung is moving to Texas for its friendlier policy environment and lower taxes as the company goes big on AI while consolidating its electronics business.
Samsung office (Representational image)
Samsung Electronics has cut jobs across its U.S. consumer electronics business, impacting employees in New Jersey and Texas as part of a headquarters shift. Nearly 800 people have been affected due to this shift.
The company said 739 roles in Englewood Cliffs, New Jersey, are affected as Samsung Electronics America (SEA) moves its base to Texas, Reuters reported. While many employees have been offered relocation, others have been laid off.
At its Plano, Texas office, about 100 workers — including staff in the mobile division — have also been let go, according to a source. The exact scale of total layoffs remains unclear, but internal documents describe an “enterprise-wide reduction-in-force” with a “significant number of impacts.”
The move is notable as Samsung Electronics America staff had only recently shifted to new offices in New Jersey less than a year ago. The unit employs roughly 1,200 people in the state.
Chip Boom Vs Consumer Struggles
The job cuts highlight a widening gap within Samsung’s business. Its chip division is booming on strong AI-driven demand, while consumer electronics — including smartphones and appliances — face rising costs and stiff competition.
Samsung has signalled a sharp jump in quarterly profits driven by chips and plans to invest heavily in new facilities. In contrast, its mobile division is expected to post its first-ever loss amid pressure from Apple and Chinese rivals like TCL and Hisense.
Higher chip prices linked to the AI boom have further squeezed margins across its consumer products.
The restructuring mirrors a broader tech trend. Companies such as Microsoft, Amazon and Meta have also cut jobs while ramping up AI investments.
Samsung is also joining firms like Tesla and Oracle in expanding operations in Texas, drawn by lower taxes and business-friendly policies.
Uncertainty Among Employees
Employees fear more layoffs could follow, along with a possible consolidation of Samsung’s appliance, home entertainment and mobile units as the company shifts focus toward chips, a current SEA worker was quoted saying the report.
Samsung, however, said there is no broad global restructuring underway in its consumer business. It added that the headquarters relocation is aimed at improving collaboration and aligning teams within a growing AI and technology ecosystem.
As of end-2025, Samsung had 11,770 employees in the United States.
Separately, its IT services arm, Samsung SDS America, has flagged potential cuts of 179 roles in New Jersey due to a headquarters relocation. The company said those changes are not linked to layoffs or restructuring.
Handpicked stories, in your inbox
A newsletter with the best of our journalism
submit
Will Samsung’s Texas move lead to more job cuts?
Employees fear more layoffs could follow Samsung’s recent job cuts as the company shifts operations to Texas. Samsung Electronics has laid off 739 employees in New Jersey and around 100 in Texas as it relocates its U.S. headquarters from New Jersey to Texas.
How will this shift impact Samsung’s market competition?
Samsung’s shift of its U.S. consumer electronics headquarters to Texas, accompanied by layoffs of 739 employees, is driven by lower taxes and business-friendly policies.
Could other tech companies follow Samsung to Texas?
Other tech companies may follow Samsung to Texas due to the state’s lower taxes and business-friendly policies. Samsung is relocating its U.S. consumer electronics headquarters to Texas, joining companies like Tesla and Oracle that have also expanded operations there.
Location :
Washington D.C., United States of America (USA)
News world Samsung Lays Off 739 Employees As It Shifts Operations To Texas For Lower Taxes, Business-Friendly PoliciesDisclaimer: Comments reflect users’ views, not News18’s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Read More