A California-based logging company has blamed state regulators for its decision to make 37 workers redundant.

Scotia Pacific, a subsidiary of Pacific Lumber Co, will lay off workers in its science and forestry divisions.

The company needs to increase logging activity to prevent bankruptcy but its harvesting plans were blocked in June by the State Water Resources Control Board, which said an earlier approval of the plans by a regional water board did not include a proper environmental review.

Environmental groups have criticised Scotia’s decision to lay off scientists, which they say will lead to less environmental testing and poorer enforcement of state regulations.