Samsung Electronics has eliminated several hundred positions in its American operations located in New Jersey and Texas. Some employees received offers to relocate as part of the changes, based on information from Reuters.
The company explained that the reductions stem from relocating its U.S. headquarters to Texas rather than any connection to artificial intelligence initiatives.
In Englewood Cliffs, New Jersey, 739 positions were impacted. Additionally, approximately 100 roles in the mobile division at Plano, Texas, were eliminated.
Samsung stated that these actions do not involve a worldwide reorganization of its consumer products operations.
Although demand for AI chips has strengthened certain segments of the business, consumer electronics have faced challenges from increased costs.
The firm anticipates a significant profit increase in the second quarter. However, higher memory chip prices have raised smartphone costs, leading to a sharp drop in sales within India’s lower-priced mobile segment.
In the Indian smartphone market during the second quarter of 2026, Samsung held the second position with 17.6 percent market share.
Recent staff reductions at other tech firms such as Meta, Microsoft, and Amazon have been linked to multiple factors beyond AI.
