Fairfax staff walk over jobs cuts

Sydney - Fairfax Media will cut 550 full time jobs as part of a "business improvement program" across its Australian and New Zealand operations.

Staff from a number of Fairfax newspapers have today planned to strike over the cuts. The Media Entertainment & Arts Alliance said staff protests are underway in New South Wales and Victoria.

News Limited in Australia is reporting that the protest could halt publication of the weekend editions of The Sydney Morning Herald and The Age.

Fairfax CEO David Kirk (pictured) said the program will deliver around A$50 million in annual cost savings. Approximately $25 million of the savings will flow into the 2009 financial year.

Fairfax Media Limited is one of Australia's key newspaper publishers, but also owns many commercial radio and online media properties.

"This is the third wave of business improvement initiatives we have undertaken over the past three years," Kirk said in a statement.

"Over the course of the 2006 and 2007 financial years we achieved $52 million in ongoing real cost reductions. Cost synergies associated with the merger of Fairfax Media and Rural Press and the acquisition of Southern Cross Radio produced a further $53 million in savings. All of these synergies will be realised by the end of this financial year."

As a result of the staff cuts, the company will book a one-off charge of approximately A$50 million for redundancy and associated costs.

"Media companies fit for the modern media world need to be lean and agile. This far reaching program will position us well for the next stage of our growth and development."