Telstra's decision to axe jobs at its customer service centre in Lismore is devastating, the city's mayor says.
Mayor Jenny Dowell says the plans are a huge loss for the regional community in northern NSW.
"I have had a phone call from a mother whose son works at the call centre," she told AAP.
"He moved here from Melbourne for it and his mother says he is just shattered."
Telstra on Tuesday said it would close its customer service centres in Lismore and Townsville in north Queensland, resulting in the loss of 422 jobs.
It will also consolidate some service delivery testing functions in Melbourne and Sydney into other call centres operated by Telstra and its partners.
"The proposed changes would, if implemented, result in 422 Telstra roles and a number of agency roles becoming redundant," Telstra said in a statement.
Ms Dowell said she had been personally assured that jobs in her city were safe after Telstra closed its Grafton call centre in 2011.
Most Lismore locals would know someone affected by the job losses, she said.
"I understand that at this call centre there are couples, a husband and wife who will both lose their jobs," she said.
"The ripple effect of this is huge."