The closure of Alcoa's Point Henry aluminium smelter is a "body blow" for Geelong, the city's mayor says.
The aluminium giant will also close its rolling mill in Geelong, along with a second rolling mill in Yennora in NSW, affecting almost 1000 workers.
Around 500 jobs will go by August in Geelong alone.
- Alcoa smelter 'shameful': Union
- Alcoa smelter 'unable to compete'
- Company confirms smelter, mill closures
Mayor Darryn Lyons says he didn't expect the announcement to be so big and so soon.
"It's a horrendous day for Geelong. It's another kick in the teeth for my great city," he said outside the plant.
He said workers should have been given more notice and need to be retrained quickly.
He's called an emergency meeting to be held at city hall later on Tuesday.
"We need emergency funding and we need it now," Mr Lyons said.
Australian Workers Union Victorian branch secretary Ben Davis says it's another blow for Geelong.
"Geelong is suffering yet another body blow, as this is the latest of a series of closures and job losses," Mr Davis said.
"This decision follows on from closures or massive job losses at workplaces such as Ford, Target, Boral Waurn Ponds, Qantas at Avalon Airport and the ongoing uncertainty at Shell.
"The cumulative effect of this series of hammer blows is much the same as the effect of BHP leaving Newcastle and the privatisation of the SEC in the Latrobe Valley."
Opposition Leader Daniel Andrews said it was a desperately sad day as Victoria used to lead the country in jobs and industry.
"I just can't see that today. We're slipping," he said.
He said workers needed immediate support considering the short notice given until jobs are cut.
Victorian Employers' Chamber of Commerce and Industry (VECCI) chief executive Mark Stone says the decision is disappointing but the Geelong region can still be competitive.
"While the Alcoa decision is a blow to Geelong, we remain confident that the region can remain competitive given its economic diversity and strengths in tourism, health, education, biotechnology, food and horticulture, research and advanced manufacturing."