Samsung Electronics America is relocating its US consumer electronics headquarters from Englewood Cliffs, New Jersey, to Plano, Texas, as part of a restructuring. The move will affect hundreds of employees. The relocation is set to be completed by 2026.
This includes all aspects of Samsung’s consumer electronics business in the US market, such as displays, mobile phones, televisions, and home appliances. However, it does not affect its semiconductor division, which has seen increased demand driven by artificial intelligence.
Samsung said, “The relocation forms part of a broader business transformation aimed at improving collaboration, operational efficiency and long-term growth. It already operates a major campus in Plano, which will become the headquarters location.”
According to the WARN Act filing, 739 employees at the Englewood Cliffs site of Samsung Electronics America will be affected. Samsung noted that most employees received relocation offers, while others were laid off.
Samsung Electronics America has about 1,200 employees in New Jersey, based on the previously mentioned data by US Representative Josh Gottheimer. The scale of the changes has raised concerns among employees as the company prepares to consolidate its US operations in Texas. The reorganization also impacts Samsung’s existing Plano operations. Over 100 employees, including those from the mobile division, have lost their jobs.
Samsung’s restructuring comes amid changing market conditions across its business segments. For instance, Samsung’s semiconductor business is enjoying the AI boom and demand for memory chips.
Samsung’s consumer electronics businesses continue to face intense competition and cost pressures. Competition in the smartphone segment is still very tough.The TV and home appliance businesses continue to face competition from companies such as TCL and Hisense, while Samsung’s smartphone business competes with Apple.
Component cost issues have also been adding pressure on Samsung’s consumer segments. Samsung has claimed that it is not undergoing restructuring of its consumer business across the world.
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