Samsung cuts US jobs as memory boom deepens pressure on mobile and consumer electronics units
Samsung is facing one of the sharpest contrasts in its recent history. On one side, its semiconductor memory business is benefiting from extraordinary demand and rising profits. On the other, its consumer electronics and mobile operations are dealing with weaker margins, rising component costs, and growing internal pressure.
That divide is now becoming more visible in the United States, where Samsung Electronics America has reportedly cut hundreds of jobs as part of a wider restructuring tied partly to its headquarters relocation.
Samsung Electronics America reportedly eliminates over 800 US roles
Samsung Electronics America has reportedly cut 739 positions at its Englewood Cliffs, New Jersey office as the company prepares to shift its headquarters operations to Texas. The New Jersey site previously employed around 1,200 workers, making the reduction a major change for the company’s US consumer electronics presence.
Samsung has said that many impacted employees were offered relocation opportunities. However, not every worker appears to have been retained, with some roles eliminated outright.
The cuts were not limited to New Jersey. Samsung also reportedly dismissed around 100 employees from its Mobile division office in Plano, Texas. Together, the reductions point to a broader cost-control effort across Samsung’s US operations.
An internal company notice sent to some employees on June 30 reportedly described the move as an “enterprise-wide reduction-in-force” and warned of a “significant number of impacts.”
Samsung Electronics had 11,770 employees in the United States at the end of 2025, including staff working across its chip-related businesses.
Samsung Mobile faces rising cost pressure
The job cuts come at a difficult time for Samsung’s mobile business. The division is reportedly under heavy pressure from soaring memory costs, which have become a major burden for products such as smartphones, tablets, and connected devices.
While Samsung’s memory unit is enjoying strong profits from the same pricing environment, its mobile business has to buy those components at elevated costs. That has created an unusual situation where one part of the company benefits while another struggles.
Samsung Mobile is now expected to face one of the toughest financial periods in its history. Estimates from Samsung Securities suggest that the Mobile unit, together with the Network Business division, could report an operating loss of 5.84 trillion won, or nearly $4 billion, for 2026.
If that projection proves accurate, it would mark a historic setback for Samsung’s mobile operations. The unit avoided an operating loss even during the Galaxy Note 7 crisis, when safety concerns and flight bans damaged consumer confidence. The current challenge may be even more difficult because it is tied to deep structural cost pressures rather than a single product issue.
Memory division bonuses spark internal tension
While Samsung’s consumer-facing businesses are cutting costs, the company’s memory workers are in a very different position. A new agreement with unionized employees gives memory division workers access to a special performance bonus tied to Samsung’s operating profits.
Under the agreement, memory employees can receive a bonus equal to 10.5 percent of annual operating profits if Samsung surpasses certain profit thresholds. Those thresholds are set at more than 200 trillion won from 2026 to 2028, and more than 100 trillion won from 2029 to 2035.
With expectations that Samsung could generate around 300 trillion won in operating profit this year, memory-focused employees may receive exceptionally large payouts. Current estimates suggest each eligible worker could take home around 600 million won, or roughly $400,000, in bonuses for the year.
That pay gap is reportedly creating frustration across other Samsung divisions. Employees in mobile, consumer electronics, foundry, and network-related operations are facing a much different environment, with job cuts, weaker outlooks, and far smaller compensation prospects.
Foundry workers show rising dissatisfaction
The tension is not limited to Samsung’s mobile and consumer electronics teams. A recent survey conducted by a labor group within Samsung found that 81.5 percent of 8,297 respondents in the company’s Foundry division said they intended to leave.
That figure highlights a growing morale problem inside parts of the company that are not directly benefiting from the memory boom. While Samsung’s memory business is becoming a profit engine, other divisions appear to be dealing with uncertainty, pay concerns, and competitive pressure.
Samsung’s challenge is now about balance
Samsung’s current situation shows how complex the global technology market has become. Strong demand for memory chips, fueled by AI infrastructure, data centers, and advanced computing, is boosting profits for Samsung’s semiconductor business. At the same time, those same high memory prices are making it harder for Samsung’s mobile and consumer electronics units to protect margins.
The company’s US layoffs, mobile business struggles, and internal pay divide all point to a larger challenge: Samsung must manage a booming chip business without allowing other core divisions to fall behind.
For now, Samsung remains one of the world’s most important technology companies. But the widening gap between its memory division and its consumer-facing operations could become a major test for its leadership in 2026 and beyond.
