35 workers from Sierra Pacific Industries´s mill in Chinese Camp were laid off this week.
The blame is being placed on the federal government for not providing enough wood from public land.
Officials for SPI say the employees will be laid off for varying amounts of time ranging from a couple of days to a couple of weeks.
In addition, some employees at the Chinese Camp mill have been transferred by the company to the Sierra Pacific mill in Sonora.
The logging company hopes the new Healthy Forest Restoration Act will increase the log count, preventing future layoffs.