Baidu Reportedly Begins Layoffs In Bid To Cut Costs After Disappointing Quarter, AI Roles Largely Safe

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According to Reuters, layoffs began this week and are expected to continue through the end of the year.

  • While it is unclear how many jobs will be affected by the layoff, the report said it is expected to be large-scale. 
  • The layoffs could reportedly affect up to 40% of the workforce in some teams.
  • Roles related to artificial intelligence and cloud computing will largely be protected, Reuters added, citing sources.

Chinese tech firm Baidu (BIDU) has initiated layoffs expected to impact different business units, Reuters reported on Friday, citing multiple unnamed sources.

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According to the report, the layoffs began this week and follow the company’s announcement of a third-quarter loss earlier this month. The layoffs are expected to run till the end of the year, sources told Reuters.

While it is unclear how many jobs will be impacted by the layoff, the report said it is expected to be large-scale, adding that it could reach as high as 40% for some teams.

Roles related to artificial intelligence and cloud computing will largely be protected, and more resources would be directed to AI, sources said.

As of the end of 2024, the company had 35,900 employees.

Baidu’s Disappointing Q3

For the third quarter of 2025, which ended September 30, Baidu reported a 7% drop in total revenue to RMB31.17 billion ($4.40 billion).

Net loss attributable to Baidu was RMB11.2 billion in the quarter, compared to the net income of $7.6 billion reported in the corresponding quarter of 2024.

“Our strategic AI investments are yielding strong returns. Revenue from AI-powered businesses grew over 50% year-over-year to roughly RMB 10 billion in the third quarter of 2025, laying a solid foundation for sustainable long-term growth,” Baidu CFO Haijian He said earlier this month, reiterating the company’s faith in the field of AI despite building competition.

How Did Stocktwits Users React?

Shares of BIDU rose 1% in the pre-market session at the time of writing. On Stocktwits, retail sentiment around BIDU jumped from ‘neutral’ to ‘bullish’ territory over the past 24 hours while message volume stayed at ‘low’ levels.

BIDU stock has gained 38% this year and about 37% over the past 12 months.

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