Changes to the market mean Q-West Boat Builders has been forced to disestablish 13 positions, managing director Myles Fothergill says.
"It's never an easy thing - it's difficult making decisions around positions which, let's face it, are people," Mr Fothergill said.
"We are back to the size we were four years ago. It's disappointing and not a nice thing to do but it's dictated by the market and unfortunately we have to make hard decisions from time to time."
Twelve workshop jobs and one administration position have been disestablished, with those staff finishing up after Christmas. Q-West has been working with other local and national companies to try to find alternative positions for the staff.
Mr Fothergill said after a good run for the company over the past four years the market had been affected by a number of factors, including the general election, resulting in contracts drying up.
"The elections focused on road and rail in terms of transport and unfortunately, and in my view not a very strategic move, they haven't focused on waterborne transport, particularly for Auckland.
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"Ferry operators can't make any decision about growth as there's uncertainty in that area. Potential customers aren't in a position to buy boats.
"There's work out there moving forward but unfortunately we can't sustain the workforce that we've had over the last four years.
"If we can get more work and build numbers back up again, that's what we will do."