Baldwin's base salary will be reduced from $1.4 million to $645,000 for the 2014 season as he enters the final year of his rookie contract. The fourth-year wide receiver was initially acquired in a trade for 2013 first-round pick A.J. Jenkins in a swap of disappointing WR draft picks.
After sitting out the first three weeks, Baldwin appeared in seven games during the 2013 season until he remained inactive from Week 12. He had three receptions for 28 yards last season.
Baldwin will be part of a WR mix for a roster spot behind Michael Crabtree and Quinton Patton. This includes Brandon Carswell, Chuck Jacobs, David Reed, DeMarco Sampson and Devon Wylie.
The 49ers will be saving $755,000 in cap hit for next year as they try to retain a few free agents. Last August, they saved $550,000 by keeping Kevin McDermott over veteran long-snapper Brian Jennings.