According to an industry source, Shenzhen-based internet company Tencent's (0700.HK) Soso search engine, now in its sixth year of operations, plans to initiate massive staff cuts after China's national May 1 holiday. The source reported, "Tencent Soso presently employs approximately 1,300 people, and has been vacillating between whether to shrink the team or to disband it altogether. Ultimately, the company has elected to cut down the team, and will begin to lay off large numbers of employees after May 1."

Vice president of marketing for Tencent Soso has denied the rumor.