Samsung Electronics has laid off 739 employees in Englewood Cliffs, New Jersey, as it prepares to relocate its Samsung Electronics America (SEA) headquarters to Texas. The company stated that while most affected employees received relocation offers, some were let go without further details.
Additionally, around 100 workers in Plano, Texas, including those in the mobile division, have also been laid off. This decision comes less than a year after SEA's New Jersey office was celebrated with a grand opening event.
The layoffs reflect the broader challenges facing Samsung's consumer electronics divisions, which are struggling with increased chip costs and competition from rivals like Apple and Chinese brands. In contrast, Samsung's chip division is expected to report a significant profit increase, driven by strong demand for AI-related chips.
The company has also announced plans for substantial investments in new chip manufacturing facilities. The job cuts at SEA are part of a trend seen across the tech industry, where companies like Microsoft and Amazon are also reducing their workforce while shifting focus towards AI.
Concerns among Samsung employees suggest that further layoffs may occur as the company consolidates its operations to prioritize its chip business. However, Samsung has stated that there is no current global restructuring planned for its consumer product business