Samsung axes US jobs hours before the Galaxy Z Fold 8 unveiling

We can start the Galaxy Z Fold 8 countdown timer right now, as July 22 – a big day for foldables! – is approaching fast.

You might think that Samsung is busy trying to perfect everything related to the Galaxy Unpacked in the last remaining hours.

But Sammy is also slashing US jobs, too.

The company is moving

Per the latest Reuters report, Samsung Electronics has cut jobs across its US display, smartphone and consumer electronics business, mainly impacting employees in New Jersey and Texas, according to company documents and people familiar with the matter.

About 740 positions at Samsung Electronics America (SEA) in Englewood Cliffs, New Jersey, are affected by the company's decision to move its US headquarters to Texas. SEA handles Samsung's consumer business, including phones, TVs and home appliances, but not its semiconductor (chip) division.

Want to relocate?

The company said most affected employees have been offered the chance to relocate to Texas, while others' job positions were simply axed. For the moment, Samsung doesn't disclose how many workers were laid off.

But around 100 employees at Samsung's Plano, Texas office (including people from the mobile division) have also been let go, according to one anonymous employee affected by the cuts.

It's not just the HQ relocation

Although the layoffs are tied to the headquarters move, they also highlight a growing gap between Samsung's businesses. Its semiconductor division is thriving thanks to strong demand for AI chips, while its consumer electronics business is facing slower growth and rising costs.

You've seen the effect of the AI boom: it has pushed up chip prices, making smartphones, computers and other electronics pricier.

The decision to leave New Jersey is especially surprising because Samsung Electronics America moved there less than a year ago. According to US Representative Josh Gottheimer, around 1,200 people work at the New Jersey location.

Per the original report, company documents show that some employees were informed on June 30 about an "enterprise-wide reduction-in-force" (an almost elegant way to put it) and said the changes would have a significant impact.

Samsung said moving its headquarters could lead to workforce changes because some employees may choose not to relocate, while other teams may be reorganized to better match the company's priorities.

Business is booming (for some)

Samsung may be slashing jobs, but that doesn't mean things are in dire straits. The company expects second-quarter operating profit to jump 19 times compared to a year ago, all thanks to the demand for AI chips. The company also announced plans to invest hundreds of billions of dollars in new semiconductor factories.

Things are much less positive for Samsung's mobile business, though. Analysts say this division could report its first-ever operating loss.

As of the end of 2025, Samsung Electronics employed 11,770 people in the United States, including workers in its semiconductor business.

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