Fairfax Media will slice The Sydney Morning Herald and The Age to tabloid-size and sack 1900 staff -- including about 380 editorial positions -- as part of a massive $235 million cost-cutting drive to save the media giant from corporate oblivion.

In the bombshell revelation delivered via a technically plagued internal staff webcast this morning, CEO Greg Hywood said 20% of the job cuts would come from editorial, 20% from printing and the remainder from other activities. There are currently around 10,000 Fairfax employees.