The French Prime Minister, Mr Lionel Jospin, yesterday added his voice to a chorus of disapproval about plans by tyre giant Michelin to cut its European workforce by 10 per cent despite rising profits.

Anger among trade unions and government ministers at the decision has only been fuelled by the initial euphoric reception given to the plan by the Paris bourse, as the harsh reality of modern capitalism struck home in France.

"When you see a company announce a 20 per cent rise in profit and at the same time talk about sacking staff, you have to sit up and say `watch out'," Mr Jospin said, adding that the struggle against unemployment had to be "shared by everyone".

Other ministers denounced the move as "scandalous" and "revolting", while unions cried foul. The outrage knocked 3 per cent off Michelin's stock yesterday, after it had jumped 12.6 per cent on Thursday on news of the restructuring.