Baidu Inc. (Nasdaq: BIDU) reported 12 internal corruption allegations and a layoff of 14 employees this week, with its shares down 2 percent intraday Friday.
The Chinese search engine giant said 14 people involved have been dismissed with some of them criminally investigated and arrested by the police. These illegal acts involved illegal such as accepting bribes and infringing trade secrets, false reimbursement, and false report bonuses, etc.
“An upright and clean business atmosphere is the cornerstone of the company's long-term success. No matter whoever the employee is, once the ethical rule is violated, he or she will not be tolerated. Cases will be transferred to the public security department for handling in serious scenarios,” Baidu said in its official notice released by its professional ethics committee on July 31.
Besides Baidu, other Chinese Internet giants have been combating internal corruption since last month.
Two senior employees in Ant Financial Services Group, the finance arm of giant Alibaba Group Holding Ltd. (NYSE: BABA), have been arrested for accepting more than $1.9 million in bribes on July 19. They approved an unqualified application and handle gambling and fraud complaints.
Xiaomi Corp. (HKEX: 1810), the world's fourth-largest smartphone maker, declared its employee Zhao Qian had been sentenced to jail for accepting 7 million yuan from suppliers according to a leaked internal email on July 20.
China’s ride-sharing giant Didi Chuxing Technology Co. Ltd. announced it fired 29 employee for serious disciplinary violation according to the company’s WeChat account today.
Shares in Baidu were trading at $107.51, down 2 percent by noon. The company announced to release its financial results on 19 August.