At least another 20 staff have been told they will lose their jobs at David Jones in Wollongong, in what has become a major turning point in the once-mighty store's presence in the city.
This brings to 28 the number of jobs to be lost in Wollongong, with others told on Wednesday their positions would go.
The move came as a surprise to staff members who had come in to work on Wednesday with no idea of what was about to happen.
A spokesman for the chain has said the job cuts reflected a "difficult time in retail".
He confirmed that 28 redundancy "consultations had commenced" but did not say what criteria were used to determine who would go.
"We have started a process of consultation with our impacted team members and have also consulted with the union," he said.
"These changes are the result of tough trading conditions and have not been made lightly. We are currently exploring redeployment options and providing transitional support to all impacted team members."
The retail workers' union, the SDA, was contacted for comment. NSW secretary Bernie Smith did not respond to calls from the Mercury seeking the union's position.
One employee chosen for redundancy said some who would leave had worked there for more than 30 years.
"They're not actually offering you another job - they've got some pages of jobs you can apply for in the David Jones-Country Road group, but they're in Sydney, Western Australia, all over," she said.
There were also job losses in January when David Jones closed its gourmet food hall in Wollongong, which had not performed as hoped.
The cuts are a response to two years of underwhelming earnings results.