Alibaba reduced staff by about a third in 2025, while Baidu cut nearly 7 percent. The changes reflect a broader industry shift, with companies reallocating resources and talent to accelerate AI development and long-term innovation.

Analysts say the transition is also driven by economic pressures and changing demand, but highlights growing investment in AI-focused roles. Workers report ongoing restructuring, with positions tied to artificial intelligence and cloud services becoming more stable amid wider organisational change.