This week, Baidu rolled out a layoff scheme encompassing several business units, a move anticipated to persist through the year's end and characterized as a 'significant' downsizing. Certain teams might face a reduction rate of up to 40%, with the Mobile Ecosystem Business Group bearing the brunt, whereas roles tied to artificial intelligence (AI) and cloud computing are mostly spared. The tech giant also plans to ramp up its investments in the AI sector. This round of layoffs follows two successive quarters of revenue decline for Baidu, marked by a 7% drop in overall revenue during the third quarter and a steep 18% fall in online advertising earnings, culminating in losses. Over the years, despite Baidu's persistent investment in AI, it hasn't successfully spurred growth in its core online advertising division, causing a loss of market share. Its 'ERNIE Bot' offering trails behind rivals, experiencing low user engagement. Presently, Baidu's AI approach centers on weaving technology into its current product lineup.