Wellington, May 5 NZPA - Phone and internet service provider Orcon plans to cut about 23 jobs despite being on track to meet this year's profit forecasts, as it picks lower growth next year.

State-owned Orcon, which currently has 144 employees, said the number of redundancies may change after consultation, expected to take a week. Staff were told today.

Orcon said jobs across the business were at risk.

"Although on target to meet current year profit objectives, Orcon anticipates a more challenging year ahead," chief executive Scott Bartlett said.

"The company has therefore revised its growth targets for the next period and as a consequence will also be reducing the business cost structure."

Orcon was working with employment agencies about vacancies in similar fields, giving staff time off to attend job interviews, and allowing access to employment help programmes and WINZ financial advice.

Yesterday, Orcon said it had bought internet hosting business iSERVE, saying it wanted to extend beyond broadband.

In mid-2007, Orcon was bought for $24.3 million by government broadcast and telecommunications business Kordia Group.