Baidu Begins Major Layoffs as It Redirects Investment to AI

Chinese tech giant Baidu has initiated significant layoffs across several business units as it accelerates its shift toward artificial intelligence, signalling one of its most aggressive restructuring moves in recent years. The company is reportedly cutting hundreds of roles, primarily in non-core or underperforming divisions, as it reallocates resources to strengthen its leadership in AI, generative models, and autonomous technologies.

The layoffs come amid intensified global competition in AI, with companies such as OpenAI, Google, and Alibaba rapidly advancing their models and platforms. Baidu’s decision reflects its strategy to consolidate operations and focus investment on high-impact areas like its Ernie AI model, autonomous driving unit Apollo, and cloud-based AI services. Internal sources suggest that the restructuring aims to streamline costs, increase operational efficiency, and accelerate product development cycles.

Employees across marketing, content operations, and legacy internet services are among those affected. While Baidu has not disclosed the exact numbers, industry analysts estimate that the workforce reduction could be one of its largest since the company’s early restructuring phases a decade ago.

Despite the layoffs, Baidu’s financial performance has shown resilience, with rising demand for AI cloud services and enterprise adoption of its generative AI offerings. The company is positioning itself to be a major player in China’s AI race, particularly as Beijing emphasizes domestic innovation and technological self-reliance.

The restructuring underscores a broader trend in the tech industry: companies worldwide are prioritizing AI-driven growth, even at the cost of deep workforce cuts. For Baidu, the move marks a decisive pivot toward an AI-first future.