Samsung is cutting about 839 jobs in the United States while its semiconductor business is benefiting from a sharp profit increase driven by AI chip demand. The contrast reflects a broader shift in the company’s priorities as consumer electronics divisions contend with rising costs and intense competition.
The largest impact is tied to Samsung’s decision to move the headquarters of its consumer electronics division to Texas. Samsung Electronics America confirmed that 739 positions at its Englewood Cliffs office in New Jersey are affected by the move.
That figure represents more than 60% of Samsung Electronics America’s roughly 1,200 employees in New Jersey. Some workers were offered relocation, while other roles were affected because they were not moved or because their functions were optimized.
AI Demand Reshapes Samsung’s Profit Base
Samsung’s semiconductor operations have become its main earnings engine as hyperscaler demand lifts the memory business. The company expects second-quarter operating profit to reach 89.4 trillion won, nearly 19 times the level recorded in the same period a year earlier.
In the first quarter, chip business profit increased nearly 50-fold and accounted for about 94% of Samsung’s total operating profit. Samsung has also announced plans to invest hundreds of billions of US dollars in new chip factories.
A recent report indicated that Samsung could generate more profit in 2026 than the accumulated earnings of its semiconductor division over roughly the previous 40 years. The outlook underlines how strongly AI-related memory demand is influencing the company’s financial direction.
| Location | Jobs affected | Reported context |
|---|---|---|
| Englewood Cliffs, New Jersey | 739 | Consumer electronics headquarters relocation |
| Plano, Texas | About 100 | Includes employees from the mobile division |
| Ridgefield Park, New Jersey | About 179 | Samsung SDS America regional headquarters relocation |
Texas Takes a Larger Role
Samsung said the relocation is intended to bring teams together within a technology and AI ecosystem, making collaboration across business units more effective. The company also described the move as a way to align its organization with business priorities.
Texas already plays a central role in Samsung’s US operations, with chip plants in Austin and Taylor and a mobile business center in Plano. The state is also known for lower taxes and regulations considered more business-friendly.
About 100 employees in Plano, including workers from the mobile division, were also reported to have lost their jobs. An internal document shared with employees on June 30 said the workforce reduction was broad and had a significant effect across several divisions.
The decision drew attention because Samsung’s Englewood Cliffs office was only occupied in September of last year. The building had replaced the company’s previous Ridgefield Park office, which had been used since 1992.
The opening of the newer office was attended by several US officials, including US Representative Josh Gottheimer. Less than a year later, Samsung chose to consolidate more teams in Texas.
Consumer Electronics Face Higher Costs
Rising AI demand has tightened supplies of DRAM and NAND memory, increasing component prices. That pressure has raised production costs for smartphones, televisions, and other consumer electronics products.
Samsung’s mobile division is expected to be at risk of posting a loss for the first time, even though sales of the Galaxy S26 series have been considered strong. In premium smartphones, Samsung faces Apple’s dominance, while its TV and home appliance businesses are under pressure from TCL and Hisense.
According to Beritasatu.com, Samsung said it is not carrying out a major global restructuring of its consumer electronics business. However, some employees remain concerned about possible further consolidation in home appliances, home entertainment, and mobile operations.
Samsung Electronics employed 11,770 people in the United States by the end of 2025, including semiconductor workers. Samsung SDS America indicated that changes affecting about 179 roles in Ridgefield Park were part of a regional headquarters relocation rather than layoffs or restructuring.
