Samsung Electronics has cut hundreds of jobs across its US consumer electronics operations as part of a restructuring linked to the relocation of its American headquarters, Reuters reported.
The South Korean technology company said 739 positions at Samsung Electronics America (SEA) in Englewood Cliffs, New Jersey, are affected by plans to move the division’s headquarters to Texas. The restructuring applies to SEA’s consumer electronics business and does not include its semiconductor operations.
Samsung said most affected employees have been offered relocation packages, while others have been laid off.
In Plano, Texas, around 100 employees, including staff in Samsung’s mobile division, have also been laid off, according to a source familiar with the matter. The sources requested anonymity because of the sensitivity of the issue.
The workforce reductions highlight contrasting fortunes within Samsung, whose semiconductor division has reported record profits while its consumer electronics business faces mounting pressure from rising chip costs.
The relocation is notable because Samsung Electronics America moved into new offices in New Jersey less than a year ago. According to a press release from US Representative Josh Gottheimer, the company employed around 1,200 people at the site when the new headquarters opened last September.
Documents reviewed by Reuters show that Samsung notified some employees on June 30 of an “enterprise-wide reduction in force,” stating that the restructuring would have a “significant number of impacts.” The company did not disclose the total number of layoffs.