MATTOON — Consolidated Communications Holdings has planned $2.5 million in annualized cost reductions this year, with most coming from "head-count adjustments," company officials said Thursday.

Only about $50,000 to $100,000 of those savings were realized during the quarter that ended June 30, and the remainder will come over the last six months of the year, Chief Financial Officer Steve Childers said during a teleconference call about second-quarter earnings.

Childers did not specify how many jobs — or what kinds of jobs — would be cut.

But company Treasurer Matt Smith said about 11 positions were eliminated in mid-June, with some of those not being filled after people — including a senior vice president — took jobs elsewhere.

Smith said he expects "another 10 or so" positions to be eliminated companywide during the second half of the year, with some of those occurring as a result of attrition.

Altogether, about 2 percent of Consolidated's workforce is affected by the reductions.

Smith said the Mattoon-based telecommunications company expects $1.5 million in annualized savings from the reductions already made, and another $500,000 in savings from the reductions yet to come.

The remaining $500,000 in annualized savings comes from Consolidated not renewing its lease for its sales and administration center in Mattoon.

The lease of that building expired July 31, Smith said, and the 280 people there were relocated to Consolidated's corporate office in Mattoon and other buildings.

First Mid-Illinois Bancshares announced Wednesday that it acquired the sales and administration building — a former Masonic building built in 1929 — for its headquarters.

Nationally, Consolidated Communications had 970 full-time and 21 part-time employees as of Dec. 31, 2010. About 49 percent of those were covered by collective-bargaining agreements, according to the company's annual report.

Last year, the company cut 66 full-time and 48-part-time positions as the result of the sale of its Consolidated Marketing Response and operator services businesses.

On Thursday, Consolidated announced a sharp drop in second-quarter earnings, compared with a year earlier.

Net income for the quarter totaled $5.35 million, down 23 percent from $7.17 million during the same quarter a year ago. Diluted net income per share fell to 18 cents, down from 24 cents a year ago. The company declared a quarterly dividend of 38.7 cents per share payable Nov. 1.

Consolidated Communications provides voice, data and video services to residential and business customers in Illinois, Texas and Pennsylvania.

But while the company has seen an increase in revenue from data and Internet services, it's getting less money for local and long-distance calling service, network access and from subsidies.

Revenues totaled $92.6 million in the second quarter, down from $95.7 million a year earlier.

The number of Consolidated's local access lines is down 4.1 percent from a year ago. But the company has seen increases in DSL and Internet Protocol TV subscribers, as well as Voice Over Internet Protocol lines, over the past year. IPTV subscribers increased by the greatest percentage — up 19.7 percent over the past year.

During the teleconference, Consolidated officials said they would consider further acquisitions, including possible "fixer-upper" properties. But they said any targets would depend on "size, location and price."