UPDATE 2-Windstream to cut 375-400 management jobs

* Says restructuring will save $30-$40 mln annually

* Shares down 1 pct

May 31 (Reuters) - Telephone company Windstream Corp will cut up to 400 management jobs, or 3 percent of its workforce, to reduce costs as sales of fixed line services falter.

The restructuring, which is expected to be completed in the third quarter, will result in annual savings of $30-$40 million, the company said. The company had a net profit of $172.3 million on revenue of $4.29 billion in 2011.

"We began initial planning for this management review last December," CEO said Jeff Gardner said in a statement.

The company posted lower-than-expected quarterly results earlier this month, hurt by a fall in revenue from its consumer and wholesale segments.

Windstream has been pushing into businesses such as providing fiber connections to wireless cell towers and computer data centers to boost its financials as more consumers disconnect home phones.

It acquired Paetec Holding Corp for $891 million in December to expand its broadband business and cut costs.

Windstream was formed in 2006 when Valor Communications Group bought the local telephone service of Alltel Wireless, now a part of Verizon Wireless.

The company's shares have fallen by a fifth this year. They were down more than 1 percent at $9.21 on Thursday on the Nasdaq.