China’s Baidu Starts Layoffs After Reporting Third-Quarter Loss — Sources

China’s Baidu began layoffs this week affecting multiple business units, according to six sources briefed on the matter, as the company struggles with intensifying competition in artificial intelligence (AI) and declining advertising revenue, Che Pan, Liam Mo, and Brenda Goh reported for Reuters.

The cuts come after Baidu’s second consecutive quarterly revenue decline. (Photo: Baidu Inc Facebook) 

The move by the company — which runs China’s largest search engine — follows its Nov. 18 report of a third-quarter loss.

The layoffs are expected to continue until the end of the year. Reuters was unable to determine the total number of cuts, but sources said the reduction is internally viewed as large-scale.

The move by the company — which runs China’s largest search engine — follows its Nov. 18 report of a third-quarter loss.

The layoffs are expected to continue until the end of the year. Reuters was unable to determine the total number of cuts, but sources said the reduction is internally viewed as large-scale.

Layoff percentages vary by business unit and performance ratings and could reach as high as 40% in some teams, two sources said.

The mobile ecosystem group will face the deepest cuts, two sources noted. However, roles tied to AI and cloud computing will be largely protected, four sources said, with one adding that more resources would be shifted toward AI.

All sources declined to be named because the information is private.

Baidu’s workforce stood at 35,900 at the end of last year, down from 39,800 in 2023 and 41,300 the year before, according to its annual reports.

The cuts come after Baidu’s second consecutive quarterly revenue decline: total revenue fell 7%, while online advertising revenue dropped 18% in the third quarter. The company also reported a loss of 11.23 billion yuan ($1.59 billion) for the period.