24 Feb 2012

More job cuts ahead at Fairfax

6:28 am on 24 February 2012

Fairfax Media has hinted that more job cuts are set to come as it reported a fall of 41% in first-half net profit to $96.7 million and outlined moves to restructure its operations.

Chief executive Greg Hywood said the company would focus operations on content and advertising sales.

The ABC reports the company plans to cut costs by reducing print distribution, sharing content across platforms, outsourcing and possibly moving equipment to New Zealand.

"Fairfax recognises that many parts of our business were built at a time when the newspaper was king and print classified advertising was the biggest driver of our business success," Mr Hywood said.

"Large parts of our current operating model are still geared to supporting the old business model."

Fairfax already has reduced staff by 4% in the last six months, but additional cuts to staff and activities are expected to save $A170 million in the next three years to centralise many aspects of the business.

Shareholders will receive an interim dividend of 2 cents per share fully franked.