TLDR
- Baidu initiated company-wide layoffs this week following a $1.59 billion third-quarter loss
- Some departments in the mobile ecosystem group could see workforce reductions up to 40%
- AI and cloud computing roles remain protected as company redirects resources to artificial intelligence
- Third-quarter revenue fell 7% with online advertising dropping 18% as competitors gain ground
- Layoffs will continue through December as company restructures operations
Baidu started cutting jobs across multiple divisions this week. The move comes after the company posted a $1.59 billion loss for the third quarter on November 18. Sources say the layoffs will continue until the end of December.
The scale of the cuts appears substantial. While the total number of jobs being eliminated remains unclear, insiders describe the reductions as large-scale. Some teams could lose as many as 40% of their employees.
The mobile ecosystem group is taking the biggest hit. Multiple sources confirm this division faces the deepest workforce reductions. But not all departments are suffering equally.
AI Teams Protected as Company Shifts Focus
Workers in AI and cloud computing roles are mostly safe from the cuts. Four sources confirmed these positions are being protected. One source said Baidu is actually moving more resources toward AI development.
This strategy makes sense given Baidu’s challenges. The company has invested heavily in AI for years. Those bets haven’t prevented its core advertising business from deteriorating.
Revenue dropped 7% overall in the third quarter. Online advertising revenue plummeted 18%. This represents the second consecutive quarter of declining revenue for the search giant.
Competitors are eating Baidu’s lunch. Social media platforms like RedNote and ByteDance’s Douyin have captured market share. Baidu’s advertising business continues to shrink as users migrate to other platforms.
The company was actually first among Chinese tech firms to launch a ChatGPT-style service in 2023. That early advantage has vanished. Competitors including Alibaba and startup DeepSeek have closed the gap.
User Numbers Tell a Troubling Story
Adoption figures reveal Baidu’s struggles. The Ernie Bot app had just 10.77 million monthly active users in September. ByteDance’s Doubao reached 150 million users. DeepSeek attracted 73.4 million users.
Baidu has tried multiple approaches with its Ernie large language model. The company moved to open source earlier this year. Strategy shifts haven’t produced the desired results.
The company is now embedding AI into existing products. More than half of mobile search pages include AI-generated content. This integration hasn’t reversed the revenue decline.
Baidu’s workforce has been shrinking for three straight years. Employee count dropped from 41,300 in 2022 to 35,900 by the end of 2024. The current round of cuts will reduce headcount further.
Job cuts are becoming common across Chinese tech companies. Alibaba and Tencent eliminated tens of thousands of positions in 2022. Those reductions came during a government regulatory crackdown on internet platforms.
American tech companies are making similar moves. Amazon and IBM are cutting thousands of jobs globally. Cost reduction has become a priority across the technology sector.
The layoffs vary by business unit and employee performance ratings. The mobile division remains the primary target for cuts. AI and cloud teams are receiving additional investment as other areas contract through the end of the year.
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