In the wake of a challenging third quarter, Chinese tech giant Baidu has commenced a substantial round of layoffs affecting numerous departments. This workforce reduction is anticipated to continue throughout the remainder of the year. The company's decision follows a period of financial underperformance, marked by a consecutive decline in quarterly revenues.
Reports indicate that certain teams within Baidu could experience a reduction of up to 40% of their staff, though the overall number of job cuts across the company remains unspecified. As of the close of the previous year, Baidu's total employee count stood at 35,900. While the company has not yet provided an official statement regarding the layoffs, sources suggest that the mobile ecosystem group is bearing the brunt of these reductions. Conversely, roles vital to artificial intelligence and cloud computing initiatives are expected to remain largely intact, reflecting Baidu's strategic focus on these key growth areas.
The impetus behind these significant personnel adjustments stems directly from Baidu's recent financial disclosures. The company reported a 7% decrease in total revenue and an 18% slump in online advertising revenue for the third quarter. Furthermore, it posted a net loss of RMB 11.23 billion (approximately $1.59 billion) for the period, highlighting a difficult operating environment. Shares of Baidu, listed in the U.S., have experienced an 8% decline over the last month, though they have seen a 40.6% increase year-to-date.
Baidu, often referred to as China's equivalent of Google, has dedicated considerable resources to artificial intelligence over the years. However, its foundational online advertising business has encountered fierce competition, losing market share to burgeoning social media platforms such as RedNote and ByteDance's Douyin. Despite being an early innovator in the AI space, launching its ChatGPT-style service Ernie in 2023, Baidu has found it challenging to maintain its lead against rivals like Alibaba and emerging AI startups such as DeepSeek. This ongoing competition underscores the dynamic and rapidly evolving landscape of China's technology sector.
These strategic workforce adjustments and financial restructuring efforts by Baidu highlight a broader trend within the global technology industry, where companies are re-evaluating their operational efficiency and strategic priorities in response to market pressures and evolving technological landscapes. The protection of AI and cloud computing roles indicates a clear commitment to future-oriented technologies, even as core legacy businesses face significant challenges and require streamlining.