Deputy CEO Brian McCarthy will step in as acting chief executive officer until the Fairfax board meets next Wednesday.

Kirk’s position had been under question on the back of a wilting share price and an earnings slump which began prior to the global economic plunge. Fairfax shares soared as much as 9% to $1.62 following the news of Kirk’s departure, though have since settled, currently trading at $1.49.

“It has been a privilege to lead Fairfax Media during this period of great change and challenge for media companies all over the world,” Kirk said in a company statement to the Australian Stock Exchange.

“A lot has been achieved and I thank especially the Board and the many managers throughout the business who have contributed to the re-positioning of Fairfax Media for continued success in the future.”

Kirk attracted a swathe of criticism in August after presiding over an initiative to cut 550 jobs at the media company aimed at delivering $50 million in cost savings.

The former rugby captain later declared that the “rivers of gold” of classified advertising were drying up for the newspaper industry, and that Fairfax would pursue other streams of revenue going forward, such as higher cover prices, display ads and online videos.

Kirk became CEO of Fairfax in October 2005 following a stint in charge of printing and distribution giant PMP.

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