Ding Lei, CEO of Netease, is realigning Netease's businesses and the latest rumor is that he may cancel all the mobile value-added services of the company with the launch of its new search engine.

Sina.com is reporting that Netease has been reducing staff since September by not renewing labor contracts with employees, and it is likely that it will not renew any labor contracts before the upcoming Spring Festival which starts on February 18, 2007.

Apart from MVAS, Netease has removed four channels, including Games, Travel, Campus and Health from its website, and Netease's explanation is that it plans to focus on core channels that feature rich information and greater business value.

Wireless services used to be a core business of Netease, however, the company began to lose interest in it since last year. Some say this is because of the high risk of the service and small incremental increases in value.