Plane maker Boeing announced last night it would axe 12,000 workers in the next two months in the first wave of a huge lay-off program triggered by the terrorist onslaught.

The laid-off employees were in the commercial airplane division and shared services group, said spokesman Mr Thomas Ryan.

"They will be off the payroll due to layoffs, attrition, retirements, and the release of contract employees by December 14th," Ryan said.

Boeing announced one week after the September 11th terrorist attacks that it would lay off 20,000-30,000 of its employees by the end of next year as orders plunged.