Long-time Hydro employee Perry Jenner had heard rumours over the past three months that his industry was trying to weather tough economic times but didn't expect his job of 25 years to be on the line so soon.
Mr Jenner works as an operator on Hydro Aluminium's three Kurri Kurri potlines and heard the news of the redundancies while on holidays.
"I was shocked and I'd rather stay than take a redundancy package," Mr Jenner said.
"I'm 48, still have a mortgage and have a few more good working years in me.
"The company has looked after me for 25 years and it really is like one big family there."
Mr Jenner said his main concern was for young employees put on about three months ago.
"There are also the younger guys who have been here a few years who have mortgages and young families," he said.
Kurri Kurri Business Chamber president Rod Doherty said the Hydro redundancies would affect businesses in Cessnock, Kurri, Maitland and northern Lake Macquarie, where most of the smelter's workforce lived. But he was confident the Hunter would bounce back.
"The Hunter is pretty resilient and used to getting kicked in the guts with 14,000 gone from BHP, job losses at Pasminco and National Textiles closing," he said.
State member for Cessnock Clayton Barr was worried about the effect the redundancies would have on other industries.
"I'm talking about the petrol station, hairdresser, truck driver, hamburger joint and the bowling club," Mr Barr said.