The Age and the Sydney Morning Herald will convert to a tabloid format and paywalls will be introduced in a bid to save $235million over three years. But the cost is huge - printing presses at Chullora and Tullamarine will shut down by June 2014 resulting in 1900 job losses, 380 from editorial staff.

The impetus for radical change came from declining circulations and falling
advertising revenue.

CEO Greg Hywood said: '[The moves] are necessary to ensure Fairfax retains its position as a leading independent media company and a key voice in our markets.'

The decisions were announced at a shareholders' meeting this morning as part of the new 'Fairfax for the Future' strategy. Fairfax's shares rose over 4% on the announcement.