Newspaper publisher and online media company Fairfax Media has begun a period of editorial staff consultation ahead of job cuts that will contribute to lowering annual costs by $30 million.

Australian Metro Publishing, the division within Fairfax that publishes papers such as the Sydney Morning Herald, The Age and The Australian Financial Review, will undergo "major structural editorial changes required to secure the futures of the metropolitan mastheads," the company said on Wednesday.

Chris Janz, the newly installed managing director of the division, said the proposed changes means Fairfax is "now within reach" of its goal to create a sustainable publishing model.

"Including non-staff costs the proposal is expected to deliver approximately $30 million in annualised savings with the majority of these savings expected in the 2018 financial year," Mr Janz said in a statement.

"Our publications will be genuine digital businesses with the capabilities and cost base to best operate in the current media environment. We will be introducing an innovative mix of new products to deliver our audience focused, quality journalism and maximise our revenue opportunities. We will continue to print for many years, so long as our newspapers have an audience and advertisers." 

Mr Janz has been in the job seven weeks.

Fairfax shares rose 1.2 per cent to $1.06 in early trading on Wednesday, just shy of a 12-month high of $1.10 hit last week.

The stock price has been boosted in recent weeks by news that private equity giant TPG has been considering a bid for the $2.4 billion media company to get its hands on Domain, the fast-growing online property advertising portal that makes up the bulk of Fairfax's value.

More to come