Samsung Electronics Co. Ltd. (OTC:SSNLF) has reportedly cut jobs across its U.S. display, phone and consumer electronics operations in New Jersey and Texas.
Chip Boom Masks Mobile Division Pain
Samsung confirmed that 739 positions in Englewood Cliffs, New Jersey, were affected as Samsung Electronics America moves its headquarters to Texas, the South Korean technology company said in a statement to Reuters on Sunday. Most employees were offered relocation options, while others were laid off, according to the report.
Citing a source who was laid off, Reuters reported that in Plano, Texas, about 100 workers, including mobile staff, were let go.
Samsung did not immediately respond to Benzinga‘s request for comment.
The cuts come as Samsung’s chip division eyes a 19-fold profit jump on AI demand, while its mobile unit faces a possible first-ever loss amid competition from Apple (NASDAQ:AAPL) and Chinese rivals.
In early July, Samsung’s chip unit posted a record first-quarter operating profit of 53.7 trillion won, roughly 94% of total company profit.
Texas Becomes New Tech Hub Magnet
With these layoffs, Samsung joins Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and Meta Platforms (NASDAQ:META) in trimming staff while boosting AI spending.
It also follows Tesla (NASDAQ:TSLA) and Oracle (NYSE:ORCL) in relocating to Texas, a state known for lower taxes and business-friendly rules. Samsung said no broad global restructuring is underway.
The cuts also fit a wider pattern of AI-era job reductions across the tech sector as firms redirect spending toward automation and AI infrastructure.
Benzinga’s Edge Stock Rankings indicate SSNLF stock has a positive price trend across all time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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