The parent company of leading Chinese online travel agency Tongcheng-Elong denied speculation about mass layoffs as it announced the start of a merger that will combine its main aviation and travel agency businesses.

Tongcheng Group will merge Hongtu Airlines, Tongcheng International Travel Service and Tongcheng Travel (formerly Wanda Travel) into a new company called Tongcheng Aviation & Travel Service Group, the Suzhou-based group said today.

Rumors have been circulating that some online travel agencies were planning to shed over 90 percent of their staff, including senior managers, and close brick-and-mortar stores. But Trip.com, Tuniu, Lvmama and Qunar have all refuted claims of mass layoffs to Yicai Global, with Tuniu revealing that it will cut some of its management salaries to 40 percent.

An insider at Tongcheng told Yicai Global that the firm’s consolidation would involve some staff restructuring, but no mass redundancies.

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