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Samsung Faces Internal Struggles Amidst Memory Unit Success
Samsung finds itself at a crossroads, with its memory unit thriving while its consumer-facing divisions struggle to stay afloat. The company’s memory-related profits have soared, allowing its DS unit to achieve more financial success in a single year than in the past four decades combined.
However, this prosperity has created challenges for other segments of Samsung’s business, leading to significant layoffs and restructuring efforts.
Samsung’s Workforce Reduction in the US
Samsung Electronics America (SEA) recently announced the elimination of 739 positions at its Englewood Cliffs, New Jersey office as part of preparations to relocate its headquarters to Texas. Prior to the downsizing, the office employed approximately 1,200 individuals.
While Samsung claims that most affected employees have been offered relocation opportunities, some have been let go. Additionally, around 100 employees from the Mobile division office in Plano, Texas, have been terminated.
An internal document from SEA revealed a company-wide reduction in force, impacting a substantial number of employees across various divisions.
As of the end of 2025, Samsung Electronics had a total of 11,770 employees in the United States, including those working in its chip division.
The Mobile division is facing significant challenges, with projected operating losses that could mark the first in its history. Amidst rising memory costs, the unit is expected to report a substantial loss for the year.
According to Samsung Securities, the Mobile unit, along with the Network Business division, may incur an operating loss of nearly $4 billion for the entire year.
Employee Unrest and Bonus Controversy
A survey conducted by Samsung’s largest union, the United Enterprise Labor Union, revealed that a significant percentage of employees within the Foundry division expressed a desire to leave the company.
Samsung’s agreement with its unionized workers includes a special performance bonus for memory workers based on the company’s annual operating profits. With expected profits exceeding 200 trillion won, employees stand to receive substantial bonuses.
This bonus plan has created disparities within the workforce, leading to discontent among employees in other divisions who feel undervalued compared to their memory-focused counterparts.
About the author: With a passion for writing, I have authored numerous articles on financial and tech topics, contributing valuable insights to readers. As an alumnus of the University of Toronto, I bring a unique perspective to my work, ensuring depth and accuracy in every piece I write.
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