Samsung Electronics has cut jobs at its US consumer electronics business as it relocates the headquarters of its American sales unit from New Jersey to Texas, affecting hundreds of employees amid weak performance in its display, mobile and other consumer electronics operations.
Samsung Electronics said on Sunday told Reuters that 739 positions in Englewood Cliffs, New Jersey, were affected by Samsung Electronics America's (SEA) decision to move its headquarters to Texas. The unit oversees the company's consumer electronics business in the United States and does not include its semiconductor operations.
The South Korean technology company said a majority of the affected employees had been offered relocation packages, while others were laid off. It did not disclose how many workers lost their jobs.
Separately, around 100 employees at SEA's Plano, Texas, office, including staff in its mobile division, have also been laid off, according to a person familiar with the matter who said they were among those affected. The person declined to be identified because of the sensitivity of the issue.
The workforce reductions, while linked to the headquarters relocation, also highlight contrasting trends within Samsung. Its semiconductor business has benefited from booming demand for artificial intelligence-related chips, driving record profits, while its consumer electronics operations have faced pressure from rising chip costs and softer demand.
The move is notable because SEA employees in New Jersey relocated to newly opened offices less than a year ago. According to a press release from US Representative Josh Gottheimer, the New Jersey operation employed about 1,200 people when the facility was inaugurated in September.
Internal documents reviewed by Reuters showed that SEA informed some employees on June 30 of an "enterprise-wide reduction-in-force," saying the restructuring would have a "significant number of impacts."
(Inputs from Reuters) |
