Question-and-Answer Session
Operator
The question-and-answer session will be conducted electronically. (Operator Instructions). And we'll take our first question from Edward Atorino with Benchmark.
Edward Atorino - Benchmark Company
I'm never first. Turn me-off. Jim, on the staff reduction, the base then would be last year's cost and expenses, excluding depreciation and excluding charges?
James Follo
I'm sorry Ed. I didn't follow that question.
Edward Atorino - Benchmark Company
See, the cost base from which the 330 is coming down is last year's cost excluding depreciation and staff reductions.
James Follo
And severance costs. That is correct.
Edward Atorino - Benchmark Company
And severance costs, which are roughly $2.7 billion, I guess, something like that?
James Follo
I don't have it --
Edward Atorino - Benchmark Company
No, okay. And this one I guess not based. Okay.
James Follo
That is the calculation.
Edward Atorino - Benchmark Company
And I guess, I have to ask the question everybody else is going to ask, how is... do you see any light at the end of the tunnel or it sounds like second quarter is not going to be that great? Any increase about beyond the next couple of months?
Janet Robinson
I think, Ed, this is Janet. I think that, what I said in the quote that it's trending similar to what we're seeing in the first quarter, is really what we're seeing right now. We do hear, of course, from advertisers that they are saving their marketing spend during this first quarter and second quarter. And traditionally, of course, particularly in the newspaper industry, third and fourth are stronger quarters for ad spending. That has been the case certainly in years past. But this economic climate certainly doesn't dictate any prediction by any stretch.
But I think there is a saving of dollars in the first half of this year that hopefully we will see loosen up as the year goes on.
Edward Atorino - Benchmark Company
Circulation revenues were up. How about volume for the three groups: Times, Globe and Regionals?
Janet Robinson
No, the volume was down as well. One thing we do see in the second half of the year though and even in the second quarter, due to the strong efforts in regard to cost reduction as outlined by not only this 330 that we just noted, but certainly things that we have done in past years that we're reaping the benefits of. We do expect to see in the remaining quarters of the year an improvement in our operating profit. I think this is really the benefit of what we've done in regard to being extremely proactive in regard to what and what we've done on the cost side, which includes client consolidations and staff reductions and a whole host of elements. We believe that this operating profit will be better in the quarters going forward excluding depreciation, amortization, severance and special items.
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