Eircom has confirmed that 900 jobs are to go by 2010, starting with 400 job cuts by the end of this year.
The cuts are across all three of eircom's divisions, which are retail, wholesale and networks, and central services.
The company says its reduction in numbers will happen through natural turnover and voluntary leaving.
In a statement, eircom said the restructuring programme is part of its continued focus to be productive and run an efficient business.
Its drive for productivity will also see it put up the price of having an eircom landline in coming months.
Yesterday, the company reported operating profits of €240m for the year to the end of March, up from €234m a year earlier.
Its revenue rose by 16% to €1.96bn.