Orcon is cutting 23 positions, or 16% of its 144 staff, in anticipation of a challenging year ahead.
The company says it is on track to meet current year profit objectives, but has revised its targets for next year and is, therefore, reducing business costs.
It says the proposed reductions involve staff across all levels and divisions.
Orcon says it is not prepared to comment further on the layoffs.
According to a report on the Techsploder blog, Orcon has also doubled its excess data charges from $1 to $2 a GB.
According to the company's Twitter feed, traffic from some sites does not count toward Orcon customers' data allowance.These include tvnz.co.nz, tvnzondemand, the George FM stream, Orcon's website and mail servers, plus some others.