The cuts will include 120 jobs at OTE's Greek mobile phone unit, according to the labour union, which called for these to be reversed.
OTE, 30 percent-owned by Deutsche Telekom, said it would seek 32 million euros ($44.04 million) in savings at its fixed-line arm.
These cuts follow company's pledge on Friday that it would make every effort to contain a profit decline after its disappointing results.
Labour unions vowed to reverse the job cuts.
"It is obvious that we will forcefully react in every way possible to block that decision," the company's OME-OTE labour union said.
Greece's main labour union GSEE urged the government, which owns 20 percent of OTE, to reverse the job cuts.
"OTE is at a critical juncture," said its CEO Michael Tsamaz in Monday's statement.
OTE's mobile phone arm Cosmote said those affected by the job cuts would receive a compensation package equivalent to between one and three years' pay. Cosmote employs about 3,500 workers in Greece and is OTE's most profitable unit.
Deutsche Telekom is pushing OTE to cut fixed-line costs, which are about 35 percent of revenues, much higher than at Deutsche's other European units.