Fliggy, the travel platform under Alibaba Group, has initiated a fresh round of workforce reductions, according to multiple employees. The cuts, which began in June, span roles in development, testing, and product management, with varying impact across departments. Some employees were asked to leave on the same day they were notified. Severance packages follow the standard N+1 formula, where N equals monthly salaries based on years of service.
A laid-off employee from Fliggy's transportation business unit reported that reduction rates differed among testing, development, and product positions, with an overall layoff rate exceeding 30% in that unit. A current employee noted that within the CTO business line, launched in December 2025, the R&D team saw a workforce reduction of 40% to 50%, while the overall layoff rate across the CTO line stood at approximately 25%.
Another Fliggy developer stated that four out of nine members in his team were laid off. Data from DingTalk staff records indicated that the CTO line had 1,244 employees before the adjustment and 916 afterward, a reduction of around 26%. The cuts primarily affected front-end and back-end developers and testing roles. However, headcount slightly rebounded to 929 as of July 9.
Alibaba Restructuring and Market Pressures
The rapid spread of reports about these workforce adjustments is linked to two major factors. First, Alibaba Group's organizational restructuring. On June 23, Alibaba announced that Fliggy and Ele.me would be integrated into its China E-commerce Business Group, allowing the group to coordinate resources across the two businesses. Industry observers believe this integration aims to strengthen business collaboration, improve operational efficiency, and tighten control over labor costs. As a result, Fliggy has begun targeted workforce optimization to improve efficiency across different business units.
Second, intensifying competition in China's online travel agency (OTA) industry. Platforms under the Trip.com Group currently account for more than 60% of China's online travel market, while Fliggy and Meituan Travel together hold less than 30%, leaving both platforms in a long-term pursuit position. Revenue from outbound travel and long-haul air ticket businesses has been affected by external market conditions, while excess staffing accumulated during previous expansion phases has added further pressure. Cost reduction and efficiency improvement have become common strategies across the OTA sector.
From a business perspective, Fliggy's core strengths lie in attracting young travelers, serving cross-border travel demand, and developing distinctive homestay offerings. However, it remains less competitive in key profit-generating segments such as long-haul air tickets and high-end hotel bookings. With limited standalone profitability, the platform has historically relied on traffic support from Alibaba's broader ecosystem.
This restructuring comes as the travel industry sees broader shifts, including Omio Group's acquisition of Rail Europe, signaling consolidation in ground transport. Meanwhile, Visafir's AI-powered visa platform targets India's outbound travel surge, highlighting technology's role in streamlining travel processes.
