SYDNEY - THE CEO of Fairfax Media Limited, the publisher of leading newspapers in Australia and New Zealand, resigned on Friday after three years leading the company.

Mr David Kirk gave no explanation for stepping down, but the move comes amid the economic downturn that has shrunk advertising revenue, forced staff cuts and seen Fairfax shares fall nearly 70 per cent.

Mr Kirk, a former captain of New Zealand's All Blacks rugby team, said it had been a privilege to lead Fairfax during this challenging time.

'I leave with the strongest pride in the quality and integrity of journalism and our mastheads and media assets, in print, online and on-air, throughout Australia and New Zealand,' Mr Kirk said in a statement.

Fairfax holds more than 300 newspapers, 50 websites and 15 radio stations. In Australia, it publishes The Age, the Sydney Morning Herald and The Australian Financial Review, among others. Its New Zealand mastheads include The Dominion Post and The Press.

There had been recent speculation about Mr Kirk's position in the current negative economic climate. Shares in Fairfax Media are down 68 per cent this year, compared with a 44 per cent slide in the overall market.

After Mr Kirk's announcement, shares were trading up 0.34 per cent at AUD$1.495 .

Earlier this year, Mr Kirk initiated a cost-cutting plan thatincluded dropping 550 jobs. One of the first to go was Andrew Jaspan, editor of The Age newspaper. On Thursday, Mr Alan Oakley stepped down as editor of the Sydney Morning Herald.

Fairfax Chairman Ronald Walker praised Mr Kirk as an 'outstanding CEO' and said he had helped with operational improvements including cost reductions, circulation growth and a rapid growth in Internet earnings.

'He and his team have led the complete repositioning of the company, from a metropolitan newspaper publishing business to a position in which the company is now clearly the leading media company in Australasia,' Mr Walker said in the statement.

He said deputy chief executive Brian McCarthy would act as interim chief until the board meets next week.

Other media companies have also watched their shares drop and advertising shrink. News chief Rupert Murdoch, a main Fairfax rival, recently said there would be cuts at his Australian publications. -- AP