Up to 90 workers at the Clarks shoe factory in Ilminster have been told they are to lose their jobs.
The Clarks factory in Ilminster will close early in 2005
The staff were told on Friday that the factory would close by early April because foreign imports mean it is no longer competitive.
A union spokesman said although the announcement was expected, it still shocked members.
Talks between the union and management are planned for next week to find out the workers' future.
KFAT union spokesman Terry Meakin said: "They are looking [to close] towards the end of March, or early April.
"There are cheap imports coming in from China and Vietnam making it a hugely competitive market. Regrettably they have been unable to compete."
Some workers may be moved to other roles in the company.
Consultations between management and unions will begin early next week.