Baidu (BIDU) Stock: Search Giant Axes Jobs as $1.6 Billion Loss Rocks Company

TLDR

• Baidu launches layoffs across divisions after reporting $1.59 billion Q3 loss on November 18
• Mobile ecosystem group hit hardest with potential 40% cuts in some departments
• AI and cloud computing positions protected as company doubles down on artificial intelligence
• Online advertising revenue crashed 18% while competitors capture market share
• Workforce already down to 35,900 from 41,300 in 2022 before latest cuts begin

---

Baidu began widespread layoffs this week following a disastrous third quarter. The company reported a $1.59 billion loss on November 18. The cuts will extend through the end of this year.

Baidu, Inc., BIDU

Multiple sources confirm the reductions are happening across various business units. While exact numbers remain undisclosed, insiders describe the layoffs as large-scale. Some teams could lose up to 40% of their workforce.

The mobile ecosystem group is bearing the brunt of the cuts. This division faces the steepest reductions as Baidu restructures its operations.

AI Roles Spared From Cuts

Employees working in AI and cloud computing can breathe easier. These positions are largely protected from the layoffs. Sources say Baidu plans to funnel more resources into AI development.

The company’s workforce has been shrinking for years. Staff numbers dropped from 41,300 in 2022 to 35,900 by the end of 2024. The current round of cuts will push that number even lower.

Third-quarter results were brutal. Total revenue fell 7% year-over-year. Online advertising revenue dropped 18%. This marks Baidu’s second consecutive quarter of declining revenue.

Social media platforms are stealing Baidu’s lunch. RedNote and ByteDance’s Douyin have captured market share from the search giant. Baidu’s core advertising business continues to struggle.

Early AI Lead Evaporates

Baidu was first among Chinese tech companies to launch a ChatGPT-style service in 2023. That advantage has disappeared. Competitors like Alibaba and DeepSeek have caught up quickly.

User adoption numbers paint a grim picture. Baidu’s Ernie Bot app had only 10.77 million monthly active users in September. ByteDance’s Doubao reached 150 million. DeepSeek hit 73.4 million.

The company has tried various strategies with its Ernie large language model. It even moved to open source earlier this year. These pivots haven’t delivered results.

Baidu is now embedding AI into existing products. Over half of mobile search pages include AI-generated content. But this hasn’t stopped the revenue slide.

Tech Sector Cuts Widespread

Job reductions are becoming standard across Chinese tech companies. Alibaba and Tencent eliminated tens of thousands of positions in 2022. The moves came during a government regulatory crackdown.

U.S. tech firms are making similar cuts. Amazon and IBM are slashing thousands of jobs worldwide. The entire sector is tightening operations.

Baidu’s layoffs vary by department and performance ratings. The mobile division remains the primary target. AI and cloud teams are receiving additional investment while other areas shrink.

The cuts started this week and will run through December 31. Sources say the reductions are necessary as Baidu refocuses on artificial intelligence while its traditional advertising business continues declining.

The post Baidu (BIDU) Stock: Search Giant Axes Jobs as $1.6 Billion Loss Rocks Company appeared first on Blockonomi.