China's Google Baidu Begins Layoffs Hitting Multiple Units After Brutal Q3: Report

<p>Chinese tech firm <strong>Baidu Inc</strong>. <a class="ticker-link" data-ticker="BIDU" data-exchange="NASDAQ" href="https://www.benzinga.com/quote/BIDU" target="_blank" rel="noopener">(NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/BIDU">BIDU</a>)</a> started layoffs this week that will hit multiple business units and are expected to run until the end of this year, according to a report published on Friday. </p>



<h2 class="wp-block-heading">Could Be As High As 40% For Some Teams</h2>



<p>While the companywide number of jobs being cut could not be established, the layoff numbers varied by business unit and performance ratings and could reach as high as 40% for some teams, Reuters reported. </p>



<p>Baidu&#8217;s workforce stood at 35,900 at the end of last year, according to its annual report.&nbsp;The company did not immediately respond to <a href="https://www.benzinga.com/">Benzinga</a>&#8216;s request for comment. </p>



<p>According to the Reuters report, which cites sources, the mobile ecosystem group will bear the brunt of the cuts, but roles tied to AI and cloud computing will largely be protected. </p>



<p><em><strong>See also</strong>: <a href="https://www.benzinga.com/news/politics/25/11/49100835/trump-asks-sanae-takaichi-not-to-provoke-china-after-japan-pm-hinted-at-military-action-over-taiwan-invasion">Trump Asks Sanae Takaichi Not To Provoke China After Japan PM Hinted At Military Action Over Taiwan Invasion</a></em></p>



<h2 class="wp-block-heading">Grim Q3 Results On Ad Slump, AI Competition </h2>



<p>The potential cuts follow Baidu&#8217;s second straight quarterly revenue decline. The company <a href="https://www.benzinga.com/markets/earnings/25/11/48918842/baidus-ai-cloud-takes-off-but-ad-slump-steals-spotlight">reported last week</a> that total revenue fell 7% and online advertising revenue dropped 18% in the third quarter. It also posted a loss of RMB 11.23 billion ($1.59 billion) for the period. </p>



<p>U.S-listed shares in the company, which runs China&#8217;s largest search engine and rivals Alphabet&#8217;s <strong>Google</strong> <a href="https://www.benzinga.com/quote/GOOGL" target="_blank" class="ticker-link" data-ticker="GOOGL" data-exchange="NASDAQ" rel="noopener">(NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/GOOGL">GOOGL</a>)</a> <a href="https://www.benzinga.com/quote/GOOG" target="_blank" class="ticker-link" data-ticker="GOOG" data-exchange="NASDAQ" rel="noopener">(NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/GOOG">GOOG</a>)</a> have fallen over 8% in the past month, according to data from Benzinga Pro. But they are up 40.6% so far this year. </p>



<p>The Chinese firm has spent years investing in AI, but its core online advertising business has lost market share to social media platforms like RedNote and ByteDance&#8217;s Douyin.</p>



<p>And although Baidu was the first major Chinese tech firm to roll out a ChatGPT-style service called Ernie in 2023, it has struggled to keep up with competitors like <strong>Alibaba </strong><a class="ticker-link" data-ticker="BABA" data-exchange="NASDAQ" href="https://www.benzinga.com/quote/BABA" target="_blank" rel="noopener">(NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/BABA">BABA</a>)</a> and AI startup DeepSeek. </p>



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<p><em>Image via Shutterstock</em></p>