Nichols Bros. Boat Builders in Freeland on Friday announced a temporary workforce reduction of 30 employees.

A news release attributed the layoffs to a buyer’s plan to acquire and rebuild existing vessels rather than purchase a new vessel from Nichols Bros.

The reduction in personnel, expected to last an estimated three months, brings the company’s number of employees to 150.

Nichols was a participant in bidding for a project with the Golden Gate Bridge, Highway and Transportation District and was slated to produce one ferry for the system. Nichols Bros. was notified early this week that the district chose to purchase used vessels from the Washington State Ferry System instead of building a new ferry, negatively impacting Nichols’ projected workload, personnel needs and income.

Chief Executive Len York said, “This is a temporary workforce adjustment, not an indication that Nichols Brothers is headed into any serious financial issue. Our current backlog includes building two new vessels, in partnership with Kivchak Marine Industries, for the WETA in San Francisco and two new tug boats for BayDelta Marine, all of which are good projects.”

Nichols Bros. filed for Chapter 11 Bankruptcy in November, 2007, when it was sold to Ice Floe LLC, backed by Treadstone Capital Management, L.P. of Dallas and Joseph E. Usibelli, owner of Usibelli Coal Mine in Alaska.

Nichols Brothers, a sub-contractor of Todd Pacific Shipyard, is awaiting the Legislature’s approval of the bid to construct one or two new Island Home ferries for the Port Townsend-Keystone route of the Washington State Ferry System. The new vessels would carry up to 64 cars and replace the ailing ferries that were taken out of service last year due to safety concerns.

The Island Home bid from Todd Pacific was higher than anticipated, and ferry officials are deciding whether to accept it. An announcement is expected next week.

“If the Island Home ferries contract is approved, we could ramp up our workforce again and put many of those who were laid off back to work sooner,” said York. “We are hopeful that the contract for the 64-car ferries will be awarded soon.”

York said he expects the business will regain its strength and support the community with employment opportunities as both customers and producers continue to work through the current economic challenges.

York said Nichols Brothers is known for its highly-skilled workforce and unique expertise in boat building. It has been a leading manufacturer of tug boats, ferries, aluminum vessels, and commercial fishing boats since 1964.