**Baidu Initiates Largest Layoffs in Years, Focused on Mobile Eco Business Group**
Baidu has launched its largest round of layoffs in recent years this week, involving multiple business departments, with some teams experiencing layoffs of up to 40%. The focus of the adjustment is on the Mobile Eco Business Group, while positions in AI and cloud computing are being strategically retained.
According to a report by Reuters on November 28, the layoffs began after the release of the third-quarter financial results on November 18 and are expected to continue until the end of this year. Sources familiar with the matter revealed that the specific number of layoffs varies by business department and performance ratings, with some teams facing potential layoff rates of up to 40%. The Mobile Eco Business is expected to be hit hardest by this round of layoffs. Positions related to artificial intelligence and cloud computing will be prioritized for retention, with resources further skewed towards these areas.
Multiple sources familiar with the matter disclosed that this adjustment is mainly a result of intensified competition in the field of artificial intelligence and declining advertising revenue. Baidu has long been betting on artificial intelligence, but these investments have not yet driven growth in its core advertising business. The market share has been seized by platforms like Xiaohongshu and TikTok under ByteDance.
Financial data shows that in the third quarter, Baidu achieved revenue of 31.174 billion RMB, a year-on-year decrease of 7%; adjusted net profit of 3.77 billion RMB, a decline of 36% year-on-year; and a loss of 11.232 billion RMB due to fluctuations in fair value of investments. Core business revenue decreased by 7% year-on-year to 24.659 billion RMB.
As of now, Baidu has not yet responded to these reports.
According to a report by Caixin on November 29, citing information from several Baidu employees, multiple departments have begun layoffs this week, with layoff rates ranging from 10-25%, and individual departments facing layoff rates of nearly 30%, marking the largest round of layoffs in recent years.
According to Baidu’s annual reports, Baidu has conducted layoffs for two consecutive years prior to this, with the company’s staff numbers decreasing from 41,300 in 2022 to 39,800 in 2023, and further to 35,900 in 2024.