The world’s leading tech company Samsung Electronics has decided to reduce the number of its employees in America. The company has terminated the jobs of many employees associated with its mobile, display, TV and other consumer electronics businesses. These layoffs are mainly affecting employees working in New Jersey and Texas.
According to the company, this decision has been taken as part of its plan to transfer its Samsung Electronics America (SEA) headquarters in the US from New Jersey to Texas. Due to this change, many employees have been offered relocation to Texas, but those employees who are not ready to go there or cannot transfer are having to leave their jobs.
Retrenchment is happening due to this reason
Samsung said that 739 jobs at its Englewood Cliffs office in New Jersey have been affected. At the same time, about 100 employees have lost their jobs in the Plano office of Texas. These also include employees of the mobile division. Although the company has not revealed how many people have lost their jobs, but according to media reports, there may be more changes in the coming time.
Excellent performance of chip business
Interestingly, Samsung’s chip business is currently performing well. Due to the increasing demand for chips related to Artificial Intelligence (AI), the company’s profit has increased rapidly. Samsung has also recently announced an investment of billions of dollars to set up new chip plants.
In contrast, the company’s mobile, TV and home appliance business is under pressure. Apart from competing with Apple, Chinese companies like TCL and Hisense are also challenging Samsung in the TV and home appliances market. At the same time, due to AI, chips have become expensive, due to which the cost of consumer electronics products has increased and profits have been affected.
These companies also reduced the number of employees
This step of Samsung has come at a time when many big tech companies of the world are also reducing the number of employees. Companies like Microsoft, Amazon, Meta, Tesla and Oracle have also laid off thousands of employees in the recent past. The focus of these companies is now on increasing investment in AI infrastructure and new technologies.
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