Infinium Software Inc. (INFM), a Hyannis maker of software to help businesses manage finances and personnel that has struggled to move to an Internet distribution model, has fired 126 workers, or almost a fifth of its workforce, to cut costs.

The move reduces Infinium's staff from 681 to 555. The firings were scheduled to be completed Monday.

Infinium Chief Executive Bob Pemberton called the move "extremely difficult and personally taxing." But he said the move, expected to save between $9 million and $10 million each year, was needed for the firm's long-term health.

Traders reacted Monday by bumping INFM shares up 0.625, or 2 percent, to 2.6875. That's down 69 percent from its 52-week high of 8.625, and down 61 percent for the year.

Infinium announced in March that it would move to an application service provider (ASP) model, with customers paying monthly fees to get access to the software over the Internet. Monday's move is an acknowledgment that the strategy shift -- which came well into the booming "apps-on-tap" trend -- has yet to pay off. The company has lost money in three straight quarters.

"We have not exactly prospered relative to our hopes for the growth of the ASP and our new software offerings," said Chief Operating Officer John Whyte. "It's taken us a little longer to integrate them into the marketplace. We believe we're catching up to it now."

Infinium also started an e-business unit in May. The 19-year-old firm has more than 2,000 customers in a variety of industries.

The job cuts were spread across all departments, Whyte said. Infinium said it is also streamling its management system, consolidating marketing and development operations and cutting other expenses.

The company will take a restructuring charge of between $1.6 million and $1.8 million in its fourth quarter, which ends Sept. 30.