Airbus to slash 10000 jobs under crisis plan

European jet maker Airbus has revealed plans to axe 10,000 jobs, nearly a fifth of its workforce, as part of a radical cost-cutting scheme to lift the company out of a financial crisis. Airbus said it planned to cut the jobs over four years. The group said it would sell off several factories and make greater use of sub-contractors. Almost immediately after the announcement, workers in three factories in Germany downed tools, foreshadowing what is expected to be a major struggle between the company and labour organisations.

Problems at Airbus, a subsidiary of European group EADS, were exposed by long delays in production of the A380 superjumbo airliner. Deliveries of the A380 are two years behind schedule, putting a severe strain on Airbus's finances and damaging the company's reputation among clients and investors. The group is expected to report an operating loss for 2006, a sharp turnaround in its fortunes after years of bumper profits. It also faces pressure from a weakening dollar, which makes Airbus airliners more expensive in international markets.

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