The company, which publishes the Illawarra Mercury, says the proposal is aimed at ‘‘building a stronger, sustainable and modern media network’’.

More than half the Mercury’s editorial staff would go under the proposed changes, with a third of reporters, nearly three-quarters of photographers and all production positions to be made redundant.

The Lake Times and Wollongong Advertiser would be merged into one paper, while the Nowra-based South Coast Register would drop from a tri-weekly to a bi-weekly publication.

Staff at 14 papers were told about the proposed job losses at meetings on Thursday morning, with the director of Fairfax Media's Australian Community Media division John Angilley revealing the bulk of the cuts would come from the  Mercury, Advertiser, Kiama Independent and Lake Times.

Reporters would be asked to take on tasks now done by photographers and production journalists.

Mr Angilley said the changes were about ‘‘investing in our newspapers and websites to set them up for the future’’.

‘‘All our mastheads in Illawarra and South-East NSW must embrace change to ensure they remain the most trusted source of news and information for years to come,’’ Mr Angilley said.

‘‘Journalists, photographers and sales teams will work with new skills, capabilities and resources so they can continue to do what they do best – create quality journalism and connect advertisers to our audiences.’’

The journalists’ union said its members were ‘‘gutted’’ by the company’s announcement, and held ‘‘grave concerns about the ability of the newsroom to produce the same level of coverage that their readership expects’’.

“When iconic and historic mastheads ... lose reporters and photographers there is a direct loss of local news reporting because there are fewer staff on the ground involved in news gathering and the vital role of scrutinising the powerful and holding them to account,’’  Media Entertainment and Arts Alliance chief executive Paul Murphy said.

‘‘We know that the Illawarra Mercury has played a crucial role in exposing corruption in matters that have subsequently been before the Independent Commission Against Corruption – what will happen to vital public interest journalism when editorial staff numbers are slashed to the bone?’’

Fairfax staff, readers and advertisers have been given two weeks to have their say about the company’s proposal. Mr Angilley said no final decisions had been made.

Illawarra community leaders reacted with shock at Thursday’s announcement, with Wollongong Lord Mayor Gordon Bradbery saying the papers had a ‘‘very significant’’ role to play in the region. Shellharbour Mayor Marianne Saliba said it was vital to make sure the papers covered local content.

‘‘I’m sure I’m speaking on behalf of a lot of people in the community to say we’re very saddened by this news,’’ Cr Bradbery said.

‘‘These papers help the community to be kept informed and there’s also community debate within their pages ... someone has to hold a mirror to politicians and businesses and the community and I’m concerned that a distillation of news sources is a challenge to democracy.’’

South Coast Labour Council secretary Arthur Rorris said he was worried sacking more than half the staff would result in less in-depth news.

‘‘Does anyone really think that half the stories on corruption, or half the revelations about what’s really happening in our city would ever have seen the light of day had it not been for a professional, dedicated and resourced media organisation?’’ he asked.