A man walks past the Fairfax headquarters in Sydney, Monday, June 18, 2012. Australian publisher Fairfax Media Ltd. said Monday it will shed 1,900 jobs over three years and erect pay walls for two flagship newspapers as readers increasingly move online. (AP Photo/Rick Rycroft)
June 17, 2012 - 8:19 PM
CANBERRA, Australia - Australian multimedia company Fairfax Media Ltd. announced Monday it will shed 1,900 jobs over three years as part of a restructure.
The Sydney-based company also said that its The Sydney Morning Herald and The Age broadsheet newspapers will become tabloids and their websites will introduce pay walls.
Fairfax also said it would close two printing facilities.
"Readers' behaviours have changed and will not change back," chief executive Greg Hywood said in a statement.
"As a result, we are taking decisive actions to fundamentally change the way we do business," he added.
Hywood said Fairfax devised the changes after considering the merits of a full range of structural alternatives, including a demerger.
"The package of strategic initiatives is bold, and several are difficult, particularly as they will impact on some of our people," he said
"However, we believe that they are in the best interests of Fairfax, our shareholders, and ultimately the majority of our people," he said.
"They are necessary to ensure Fairfax retains its position as a leading independent media company and a key voice in our markets," he added.
In New Zealand, the stock market on Monday halted trading in shares of Trade Me, an online auction site that is majority owned by Fairfax, while Fairfax sold down its stake.
News from © The Associated Press, 2012