Vodafone will be laying off up to 250 staff by March next year.
Spokesman Craig Jones says the redundancies will be across management, back office functions and operations.
He says after the take over of TelstraClear, the company has been integrating the business and it has tracked ahead of plan.
Mr Jones says they are removing systems and process duplication within the new organisation.
He says they have also seen unprecedented levels of competition in both mobile and fixed line services in New Zealand over the last 18 months.