China’s Baidu has started laying off employees across multiple business units, according to six sources familiar with the matter, as the company faces intensifying competition in artificial intelligence and a decline in advertising revenue.

The move comes shortly after Baidu, operator of China’s largest search engine, reported a third-quarter loss on November 18. Sources indicated that the layoffs are expected to continue through the end of the year.

Layoff rates differ by business unit and employee performance, with some teams potentially seeing reductions of up to 40%, two sources said.