Baidu (BIDU) Stock: Search Giant Slashes Workforce Following $1.6 Billion Quarterly Loss

TLDR

• Baidu started company-wide layoffs this week affecting multiple business units, with cuts expected to continue through year-end
• The mobile ecosystem group faces the largest cuts, with some teams seeing up to 40% workforce reduction
• AI and cloud computing roles are being protected as the company shifts more resources toward artificial intelligence
• Layoffs follow Baidu’s second consecutive quarterly revenue decline and a $1.59 billion third-quarter loss reported November 18
• Baidu’s workforce has shrunk from 41,300 employees in 2022 to 35,900 by the end of 2024

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Baidu initiated company-wide layoffs this week following a brutal third-quarter earnings report. The Chinese search engine leader posted a $1.59 billion loss on November 18. Sources say the cuts will continue through the end of December.

Baidu, Inc., BIDU

The scale appears substantial, though exact numbers remain unclear. Some departments could see cuts reaching 40% of staff. The company employed 35,900 people at the end of 2024, down from 41,300 two years prior.

The mobile ecosystem group is taking the hardest hit. Multiple sources confirmed this division faces the deepest cuts. But there’s a silver lining for some employees.

AI Jobs Get a Pass

Workers in AI and cloud computing roles are largely safe. Four sources said these positions are being protected. One source indicated the company plans to redirect even more resources toward artificial intelligence development.

This makes sense given Baidu’s struggles. The company has poured money into AI for years. Yet those investments haven’t stopped the bleeding in its core advertising business.

Third-quarter revenue dropped 7% overall. Online advertising revenue plummeted 18%. Social media platforms like RedNote and ByteDance’s Douyin have eaten into Baidu’s market share.

Baidu was actually first among Chinese tech giants to launch a ChatGPT-style service in 2023. That early lead hasn’t lasted. Competitors like Alibaba and startup DeepSeek have caught up.

The numbers tell the story. Baidu’s Ernie Bot app had just 10.77 million monthly active users in September. ByteDance’s Doubao hit 150 million. DeepSeek reached 73.4 million.

Strategy Shifts Haven’t Worked

Baidu has tried multiple approaches with its Ernie large language model. The company even moved to open source it earlier this year. None of these pivots have sparked the growth Baidu needs.

The company is now focused on embedding AI into existing products. More than half of mobile search result pages now include AI-generated content. But this integration hasn’t translated to revenue growth yet.

These cuts aren’t unique to Baidu. Job reductions have become standard practice for Chinese internet companies facing intense competition. Alibaba and Tencent cut tens of thousands of positions in 2022 during a regulatory crackdown.

U.S. tech companies are making similar moves. Amazon and IBM are cutting thousands of jobs globally. The tech sector is tightening belts across the board.

Baidu reported its second straight quarterly revenue decline. The company’s workforce has been shrinking for three consecutive years. The trend shows no signs of reversing.

The layoffs began this week and will run through year-end. Some business units will see deeper cuts than others based on performance ratings. The mobile ecosystem group remains the primary target for workforce reduction as Baidu repositions resources toward AI development.

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