Don Smallgoods staff had no indication they would lose their livelihoods until being told that two factories would close at a cost of 640 jobs.

Don factories in Melbourne and Spearwood, WA, employing 420 and 220 people respectively, will close as the company consolidates its manufacturing at its Castlemaine plant in central Victoria.

Unions had expressed uncertainty surrounding the future of the business when Don's parent company George Weston Foods bought smallgoods company KR Castlemaine in April this year.

But there had been no indication job losses were imminent, according to Meatworkers Union Victorian secretary Graham Bird.

He said the company had been silent on the future of operations since it acquired KR Castlemaine.

"The company refused to tell us what was going on," he said.

"The answer was always that there was a review underway."

Staff met with management on Wednesday with expectations of a bright future, Mr Bird said.

Some employees had worked at the factory for more than 30 years, with many employed for more than 20 years, he said.

"We will be asking the federal and state governments to assist in any way they can," Mr Bird said.

"Our experience is once these jobs are gone it's very hard to get another job that's any good."

The Melbourne factory in Altona is due to close by September 2010 while Spearwood will shut its doors by April 2009.

Don KR Castlemaine division chief executive Mel Sutton said Don Smallgoods had lost more than $80 million over nine years.

KR Castlemaine had also experienced losses under its current business model, he said.

He said it was a sad day for everyone associated with Don KRC but the move to a single manufacturing site at Castlemaine would secure the long-term viability of the business.

"The Castlemaine site was chosen because it is the newest facility with the greatest scope for expansion," he said.

"Once it is complete it will provide a state-of-the-art manufacturing centre and secure the future of our business and iconic brands."

He refused to comment on the future of a Don KRC abattoir and boning room in Queensland.

The job cuts are the latest blow to Victoria's manufacturing industry, following the loss of 500 jobs at Holden's Port Melbourne site in June and another 600 when Geelong's Ford assembly plant closes in 2010.

They follow Tuesday's announcement that US giant Starbucks plans to cut almost 700 jobs in Australia.