Samsung announces layoffs and halts investment in Mexico

Samsung announces layoffs and halts investment in Mexico

Samsung considering shifting production from Mexico amid potential U.S. tariffs and continuing its efforts to reduce the company's global workforce by 30%.

Yes, besides announcing big layoffs Samsung Electronics is evaluating the relocation of certain home appliance manufacturing operations from Mexico to the United States in response to prospective 25% tariffs on imports from Mexico and Canada, as proposed by U.S. President Donald Trump.

Vega Solís (president of Mexico’s Business Confederation in Tijuana) said that President Trump has created:

"a very uncertain business environment by exposing Mexico to tariffs."

The company is specifically considering moving dryer production from its Querétaro facility in Mexico to its plant in South Carolina.

According to Reuters, this strategic reassessment is part of Samsung's broader efforts to optimize its global operations amid evolving trade policies and economic uncertainties.

South Korean company has also announced plans to reduce its global workforce by up to 30% in certain divisions, including sales, marketing, and administrative roles, across regions such as the Americas, Europe, Asia, and Africa.

While other companies are laying off employees just by saying that they are now relying more on AI, these developments underscore Samsung's proactive approach to navigating geopolitical challenges and maintaining its competitive edge in the global market without just putting people behind without any solid reasons.