A Labour MP says sources within Telecom have told her the company could cut close to 2,000 jobs.
Telecom indicated in February it would cut hundreds of jobs in order to save money and remain competitive.
Labour's communications and IT spokesperson Clare Curran says her sources say the company may cut its workforce from about 6,800 to 5,000.
Telecom says it is not yet in a position to give a definite number.
It says it is in the middle of telling some workers they are losing their jobs but wants to consult staff and notify the sharemarket before giving more details.