Hundreds of jobs at Telecom are being cut, as the company posts a half year profit to December 2012 of $163 million, up by around 58 percent from the previous year.
Telecom's current staff count sits just over 7000, the company says job losses will be felt in IT, retail, and some other departments.
"Without sugar coating this, it's apparent it will be well into the hundreds," says Telecom chief exec Simon Moutter.
Moutter says Telecom's cost base, including its employees, is higher than competing technology companies.
While job losses were expected as a part of . Chairman Mark Verbeist, says Telecom is in the midst of a "strategic shift" away from traditional fixed line infrastructure, to becoming more mobile and data services orientated.
In its half year report, Telecom says its mobile customer base has fallen since shutting down its CDMA network July last year. At the time Telecom said most of its CDMA customers were low-return customers with old phones in their dashboards. Since then telecom has added 100,000 new mobile connections, with key growth in prepaid services and the Skinny brand.
More as this story develops.