ByteDance has made its most significant adjustment to its ToB business in six years.

On July 30, ByteDance announced via an internal email that the Feishu product team and the Doubao product team will be integrated to form a new Doubao product team, led by Doubao head Zhao Qi, with Feishu head Xie Xin reporting to Zhao Qi.

The Feishu GTM (Marketing, Sales, Customer Service) team will be integrated with the Volcano Engine team to form a new ToB GTM organization called the 'Creativity Service Platform,' responsible for marketing, sales, and customer service for ByteDance's MaaS and SaaS cloud services, led by Volcano Engine head Tan Dai.

ByteDance's last major ToB business restructuring dates back to 2021 when Feishu, Douyin, and Volcano Engine were established as independent BUs, with Xie Xin reporting directly to ByteDance CEO Liang Rubo.

The integration of Feishu, Doubao, and Volcano Engine comes against the backdrop of AI redefining the competitive landscape of enterprise office solutions.

Tencent's WorkBuddy has surpassed 20 million monthly visits, exceeding the combined total of the second and third-ranked platforms; Alibaba's DingTalk replaced its CEO in June, integrating three AI agent products—QoderWork, Wukong, and MuleRun—to launch 'Qianwen Office.' ByteDance's restructuring of Feishu will officially kick off the battle among tech giants for control over enterprise office entry points.

1. How to Interpret ByteDance's Major Restructuring?

From its inception as a project in 2016 to becoming an independent business unit, Feishu was once a flagship high-value SaaS product for ByteDance. However, in this restructuring, parts of Feishu's product offerings are being merged into Doubao, while its sales operations are being integrated into Volcano Engine.

Is Feishu no longer competitive?

Quite the opposite—Feishu's business is still growing rapidly. According to *Caijing*, Feishu's revenue exceeded 3 billion yuan in 2025. In the first half of 2026, Feishu maintained strong growth, with Q2 revenue doubling year-on-year.

The core reason for ByteDance's integration is that the underlying logic of enterprise services has changed in the AI era.

Before the large model boom, Feishu's value lay in enhancing organizational efficiency through advanced tools. However, with the advent of generative AI and intelligent agents, this logic has been upended. The upper limit of office productivity tools is no longer determined by UI experience or functional modules but by the cognitive and execution capabilities of the underlying large models.

Over the past few years, both Feishu and Doubao have explored enterprise AI applications. Feishu launched the AI application development platform Aily to help enterprises build intelligent assistants, while Doubao has been continuously deploying enterprise-grade model services and application scenarios.

However, the two business lines were previously relatively independent, leading to fragmented resources. After integration, Feishu's enterprise collaboration data—including documents, spreadsheets, approvals, meeting minutes, and group chats—can serve as the foundation for Doubao's large models to understand real-world business scenarios, further enhancing AI's execution capabilities in office settings.

On the commercial side, the merger of Feishu's sales system with Volcano Engine to form the 'Creativity Service Platform,' led by Volcano Engine head Tan Dai, addresses long-standing pain points in China's traditional SaaS industry.

First, it reduces resource waste. Previously, Feishu sold SaaS solutions while Volcano Engine sold cloud computing and MaaS (billed by computational power and token consumption). With overlapping sales teams targeting the same large enterprise clients, communication costs increased, and synergies were limited.

Second, it Refactoring s (restructures) the monetization model. Enterprise clients show limited willingness to pay for pure software subscriptions but are highly willing to pay for bundled solutions combining 'AI computational power + large model deployment + application customization.' By integrating Feishu GTM into Volcano Engine, ByteDance can acquire clients with a holistic offering of 'infrastructure computational power (Volcano) + large models (Doubao) + front-end applications (Feishu).'

As clients use AI through Feishu, they continuously consume Volcano Engine's large model tokens and computational resources, breaking the profitability bottleneck of traditional SaaS.

This restructuring represents ByteDance's strategic focus. Instead of maintaining a high-cost, slow-return independent SaaS application, ByteDance is integrating Feishu into an AI-powered office battle centered around 'Doubao + Volcano Engine.'

2. The AI Office War Has Begun

The integration of Feishu and Doubao is a necessary move for ByteDance to compete in China's AI office sector.

By 2026, the focus of competition in the large model sector has shifted from basic parameter scale to the deep penetration of agents in productivity scenarios. With domestic AI desktop office agent users surging and monthly visits exceeding tens of millions, ByteDance can no longer tolerate internal business lines working at cross-purposes.

In the lead-up to ByteDance's restructuring, internet giants were already engaged in a fierce battle in the AI office sector.

In June, DingTalk founder and former CEO Chen Hang stepped down, with Chen Yusen taking over as the new CEO. This marked DingTalk's second leadership change in 15 months. Chen Yusen, a post-90s geek, is seen as a signal of Alibaba's strategic shift in enterprise services.

Shortly after, in late July, Qianwen Office quietly launched its beta test. The desktop version is now available, with web and DingTalk-embedded versions to follow. Qianwen Office integrates three agent products—QoderWork, Wukong, and MuleRun—and is positioned as Alibaba Cloud and DingTalk's 'sole flagship SaaS product,' as well as Alibaba's flagship product (flagship product) for the agent office market.

Tencent is also doubling down on its AI office agent, WorkBuddy, accelerating market promotion and reportedly merging the QClaw team into the WorkBuddy ecosystem.

According to Analysys' *China Office Intelligent Agent Platform Market Research Report 2026*, in June 2026, the 17 mainstream desktop-based AI-native office agent platforms in China recorded over 60 million monthly visits. Tencent's WorkBuddy led with 20.97 million visits, exceeding the combined total of the second and third-ranked platforms.

Sources reveal that Tencent founder Pony Ma places great importance on WorkBuddy, rarely missing product meetings and treating it as a 'super project' internally.

Faced with rapid encirclement by Tencent and Alibaba, ByteDance risks losing ground in the enterprise AI agent market if it continues with a multi-pronged approach of 'Feishu for Feishu's AI and Doubao for Doubao's B-end services.'

If viewed solely as a collaboration tool, Feishu has a clear ceiling. However, by positioning Feishu as an application layer and integrating it with Doubao and Volcano Engine, ByteDance is essentially building an enterprise-grade operating system for the AI era.

First, the shift from 'tool' to 'executor.'

Traditional office software requires human operation, whereas the 'Doubao + Feishu' combination aims to delegate tasks to AI agents. In the beta version of Doubao Enterprise, native integration with Feishu's documents, spreadsheets, meetings, and group chats already exists. Post-integration, AI could evolve into 'digital employees' with enterprise permissions, automating business processes.

Second, the commercial closed loop from 'software subscriptions' to a 'token ecosystem.'

AI office solutions are among the most commercially viable sectors today. In Q2 2026, over 90% of Feishu's new clients also purchased Feishu's AI products. As of June, Doubao's large models handled over 180 trillion daily token calls, translating to an annualized revenue run rate (ARR) of $4 billion for its large model business based on July's average consumption.

By incorporating Feishu into this ecosystem, every employee-AI interaction and agent-driven workflow automation becomes a consumption of Volcano Engine's underlying computational power and tokens.

ByteDance CEO Liang Rubo has stated that scaling AI peaks is ByteDance's top priority. The restructuring of Feishu, Doubao, and Volcano Engine demonstrates ByteDance's commitment to securing the entry point for next-generation enterprise intelligence infrastructure.