The Prime Minister Kevin Rudd said he was extremely disappointed that Pacific Brands was axing 1850 jobs across Australia, including nearly 300 jobs in the Illawarra.
The footwear, clothing and underwear wholesaler posted a loss of $149.9 million for the half year ending December 31.
As a result, the owner of iconic brands including Bonds and King Gee announced today it would cut jobs in its manufacturing and administration operations - including 281 jobs in the Illawarra.
Does this affect you? Send us a text message on 0409011060 or email us at scoop@illawarramercury.com.au VIDEO: 1850 clothing workers sacked
The Bonds manufacturing plant at Unanderra will close, resulting in the loss of 207 jobs, while 74 staff will be made redundant from the King Gee site in Bellambi.
"This is devastating and distressing news for the workers concerned,'' Mr Rudd told Parliament today.
"This is bad news for the TCF (Textile, Clothing and Footwear) sector, it is bad news for the economy.''
However he rejected a suggestion his economic stimulus efforts had failed.
Illawarra employees were only told of the redundancies at lunch time today, and union bosses are meeting in Sydney this afternoon to discuss what entitlements workers will receive.
Other sites across Australia to be affected are:
Bonds at Cessnock, 83 job losses Bonds at Wentworthville, 233 job losses CTE West End, Queensland, 56 job losses Holeproof at Nunawading, Victoria, 255 job losses Hosiery at Coolaroo, Victoria, 298 job lossesAs a result, many iconic Australian clothing brands including Bonds, King Gee, Holeproof and Hard Yakka will now be manufactured offshore.
For more coverage see Thursday's Mercury.
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