Electronics Giant Samsung Leaving NJ, Taking As Many As 1,000 Jobs: Officials

ENGLEWOOD CLIFFS, NJ — The electronics giant Samsung is leaving their relatively new New Jersey headquarters by the end of this year, and taking as many as 1,000 jobs with them, officials said this week.

The South Korea-based corporation had only opened their North American headquarters in Englewood Cliffs, in Bergen County, last September after having offices in Ridgefield Park for decades.

"Samsung’s decision to relocate its U.S. corporate headquarters in Englewood Cliffs to Texas by the end of the year underscores New Jersey’s difficult tax and regulatory climate and serves as a clarion call for lawmakers and policymakers to change anti-business policies," said the New Jersey Business and Industry Association on Tuesday, expressing concerns echoed by lawmakers this week.

NJBIA President and CEO Michele Siekerka pointed to the state's 11.5 percent corporate business tax as a deterrent to doing business.

Englewood Cliffs Mayor Mark Park said this week that he is sorry to see the company go, but that the town and headquarters are a great place to do business.

"As Mayor of Englewood Cliffs, I would like to thank Samsung Electronics America for being part of our community and for choosing our town as the home of its North American headquarters," he said. "While Samsung’s reported relocation to Texas appears to be based on business strategy and operational needs, we sincerely wish Samsung Electronics continued growth and success. At the same time, Englewood Cliffs remains open for business. The facility at 700 Sylvan Ave. is a first-class corporate location."

Samsung told its 1,000 New Jersey employees last Thursday that it will move, according to reports, but the company has not released an exact figure for how many employees will be relocated or laid off. The state's WARN notice website did not have an indication of layoffs as of Wednesday morning.

Patch has reached out to Samsung for more information about layoffs and will update this story when they are available.

The company released a statement to the media saying, “Samsung Electronics America Inc. is undergoing a business transformation designed to better position our organization for long-term growth and future success. As part of this effort, we are relocating our U.S. headquarters from New Jersey to our existing campus in Plano, Texas, building on our 30-year presence in the state. The transition, which will be completed by the end of the year, is intended to strengthen alignment across teams and offices."

The Korea Times quoted industry sources Monday as saying that most of the 1,000 jobs in New Jersey will be relocated, but some employees may stay behind to maintain business operations.

In addition to offices in the Dallas, Texas area, the company is building a $17 billion semiconductor manufacturing facility, according to the company website.

Among other potential factors in the company's recent strategy, they settled a longrunning pay dispute with their union last Tuesday, Reuters reported last week.

Siekerka said all is not lost in the Garden State, pointing to the possibility of incentives and other changes on the horizon.

"This is also an opportunity," she said. "Governor [Mikie] Sherrill has signaled the need and want to improve our business climate, to reduce costs, red tape and other permitting and regulatory burdens.”

New Jersey Assemblymen Christopher DePhillips and Brian Rumpf asked for a special Assembly Budget Committee hearing in response to the announcement of corporations leaving the state.

They said they'd like the committee to consider bills by DePhillips — one to lower the sales tax from 6.6 percent to 6 percent, and another to lower the corporate business tax to 2.5 percent.

Mayor Park said, "If Samsung or any business leaders know of companies looking for a strong New Jersey location, we respectfully ask that they consider introducing them to Englewood Cliffs. We thank Samsung for its time in our community and wish them great success in Texas and beyond."