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Samsung says 739 jobs aren't being cut as Plano layoffs unfold

Samsung says 739 jobs aren't being cut as Plano layoffs unfold
AUSTIN, TEXAS - APRIL 16: A Samsung smartphone sits on display at an AT&T store on April 16, 2024 in Austin, Texas. Samsung has become the top phonemaker as Apple smartphone shipments have dropped about 10% in the first quarter of 2024. (Photo by Brandon Bell/Getty Images) (Brandon Bell/Getty Images)

Samsung says the 739 figure has been widely misinterpreted.

Samsung says 739 jobs aren't being cut as Plano layoffs unfold
Samsung is laying off at least 100 employees in Plano as its headquarters moves to Texas, while clarifying a 739-position WARN notice includes relocation offers. (georgeclerk/Getty Images)

Samsung is laying off at least 100 employees in Plano as it relocates its U.S. headquarters to North Texas

Reuters, citing a person familiar with the matter, reported that about 100 employees in Samsung Electronics America's Plano office-including workers in its mobile division-were let go as the company shifts its U.S. headquarters from Englewood Cliffs, New Jersey, to its existing campus in Plano.

A Samsung spokesperson told Chron in an email that a New Jersey WARN notice affecting 739 positions should not be interpreted as layoffs. However, the company declined to provide additional details about the Plano layoffs beyond what has already been publicly reported. 

"That 739 number includes both positions that are being offered relocation to Texas, as well as some positions that were impacted as part of our business transformation," a Samsung spokesperson explained. "It would be incorrect to report Samsung is laying off 739 Englewood Cliffs employees."

The company also did not respond to Chron's follow-up questions asking whether the reported Texas job cuts would be offset by employees relocating from New Jersey or whether additional layoffs are expected in Texas.

In June, Samsung confirmed to The Dallas Morning News that it would relocate Samsung Electronics America's headquarters to its existing Plano campus, saying the move is intended to better align teams and position the consumer electronics business for long-term growth. The transition is expected to be completed by the end of the year.

The layoffs, however, come as Samsung's consumer electronics business faces mounting pressure, even as the company's semiconductor division benefits from booming demand tied to artificial intelligence. Reuters reported Samsung expects its chip business to help drive a 19-fold increase in second-quarter operating profit, while its consumer electronics operations contend with rising memory chip costs and stiff competition from rivals including Apple, TCL and Hisense.

Samsung has steadily expanded its North Texas footprint over the past several years. According to The Dallas Morning News, the company first consolidated operations at Plano's Legacy Central development in 2019 before expanding the campus multiple times in the years that followed. The outlet also reported Samsung operates a semiconductor facility in Austin and recently opened another chip plant in Taylor.

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