It blamed the downturn in global markets for the closures of plants at Longbenton and South Shields, which make circuit boards for cars, computers, and other products.
Sir Ken Jackson, general secretary of the Amalgamated Engineering and Electrical Union, said the announcement was a huge blow to the region.
"These are more quality jobs slashed in the technology sector, which demonstrates just how difficult it is for manufacturers to survive," he said.
The department of trade and industry said it deeply regretted the job losses in Tyneside. "It is vital that we help those affected by the decision," a spokesman said.
A task force is being set up to offer help, training and other support for the workers who have lost their jobs.