Labor is calling for federal government intervention after the sacking of 60 workers by a contractor responsible for rolling out the NBN across vast areas of Tasmania.
Visionstream on Wednesday confirmed the possibility of redundancies from its Tasmanian workforce, with a spokeswoman saying that as the project advanced, a different range of skills was needed.
"The revised mix of work means we need to change current staffing ratios," she told News Corp Australia, adding that there may be redeployment opportunities.
Tasmanian Labor MP Julie Collins said the job cuts show the coalition's lack of oversight and protection for workers in a project which has already suffered months of delays.
She wants Communication Minister Malcolm Turnbull to take responsibility.
"Mr Turnbull should come to Tasmania and sort these issues out now before it costs more Tasmanian jobs," Ms Collins said.
A spokesman for the minister said staffing is a matter for the individual companies.
"It was heartening to see Visionstream taking steps to ensure that workers are given adequate notice of the changes and is taking steps to retrain and redeploy workers," the spokesman said.
Communications, Electrical and Plumbing Union secretary Trevor Gauld says 40 Hobart-based positions will go, along with 20 in Launceston, and that most of the jobs cut are permanent roles.
Workers were told the news during a meeting on Wednesday morning, when Mr Gauld said they were refused union representation.
"They read a list of 40 names who were told to wait while everyone else was sent back to work," he said.
"One by one, they called the 40 workers into a room and told them consultation was finished and their employment was terminated effective immediately."
He said the move will slow the pace of the rollout and damage worker morale.
Mr Turnbull's office said the NBN rollout across Tasmania has "picked up considerable pace" and by the end of 2016 will cover 237,000 premises.
NBN Co said any job losses are regrettable.
"But it's up to our construction partners to decide what resources they need," it said.
"There are 500 people working on the NBN in Tasmania.
"So today's decision will not have an impact on the pace of the rollout."
The statement said the rollout in Tasmania is well ahead of the mainland, with NBN available to one-third of Tasmanians and work under way for another third of the state.
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