The announcement late yesterday came as industry pundits expected early news that Gunns finally had financial backing for the proposed $2.3 billion Bell Bay pulp mill.

The company's annual meeting is in Launceston today.

An announcement on pulp mill finance was expected by Christmas but sources say that it could come as early as today.

Even an in-principle agreement would be positive news for shareholders after an otherwise gloomy 12 months.

Gunns chief executive Greg L'Estrange said yesterday that the company would close "several Northern Tasmanian woodchipping sites" but did not give specifics.

Gunns has woodchip operations at Long Reach on the East Tamar, at Hampshire near Burnie and at Triabunna on the East Coast.

News of the job losses came the day after details of a $22.4 million forest industry assistance package were announced.

Mr L'Estrange said that the woodchip sites would be closed as part of a major operational restructure of the company's forest products division.

He has signalled for some time that the company would divest itself of all infrastructure not directly related to softwood plantations and the proposed pulp mill.