As 2025 draws to a close, Baidu finds itself in the throes of a significant transformation, shifting from a search engine behemoth to an AI - driven enterprise. The company's traditional business segments are experiencing substantial setbacks. In the third quarter, revenue saw a year - on - year decline of 7%, and the net loss soared to a staggering 11.2 billion yuan. Particularly noteworthy is the fact that core search advertising revenue took a nosedive, plummeting by 18% and marking its sixth consecutive quarter of decline.

In response to these daunting challenges, Baidu has launched large - scale layoffs across various regions. The core mobile ecosystem business group has borne the brunt of these cuts. Some teams within this group have witnessed optimization ratios as high as 30% to 40%. In contrast, positions related to AI and cloud computing have been preserved, reflecting the company's strategic pivot.

Simultaneously, Baidu is doubling down on its AI business. In the third quarter, AI - related revenue surged by over 50%, reaching 10 billion yuan. Li Yanhong, the driving force behind the company, has taken a hands - on approach to organizational reforms. He has established dedicated departments for foundational model and applied model R&D, with the aim of expediting the integration and implementation of AI technologies.