2degrees is proposing culling 10 percent of its workforce in response to the COVID-19 pandemic.
Chief executive Mark Aue says its 1200 staff are "its biggest asset", but the reality of the virus is that they need to take action by reducing personnel numbers or the hours people work.
Ten percent of 2degrees' workforce is 120 staff members.
"We are already seeing revenue impacts, and like all businesses, are in an unprecedented situation with uncertainty on how long it will last," he says. "We're starting those difficult discussions with our people now, and out of respect for them won't be providing more detail until we've had time to fully consider their feedback."
The business is classed as an 'essential service', but Aue says it isn't "immune" from the financial impacts of the crisis.
"We are a resilient business and will continue to invest in our mobile and broadband networks, and ensure our customers are well served by our New Zealand-based care team," he said.
"We owe it to our customers and staff to ensure we weather this storm, so we're making some difficult decisions now to avoid bigger changes later."
He says 2degrees staff were briefed on Tuesday on the range of cost reductions it has taken in response to the pandemic.
In addition to the staffing cuts, the company's measures include reducing capital spend, deferring non-essential projects, a hiring freeze and other cost-saving initiatives.