Cyanotech Corp., the Kona, Hawai'i-based firm producing nutritional and health products from microalgae, laid off 13 workers last week because of continuing losses, reduced sales and the need to cut costs.

The company said the layoffs amounted to 20 percent of its workforce in its production and administrative staff. The staff cuts were made Friday to better align costs with sales, Cyanotech said in a regulatory filing with the Securities and Exchange Commission.

"This workforce reduction ... will better balance costs with sales in the current sales and production environment," the filing said.

The cutback was the latest move for the company as it shifts strategy and looks to increase sales with new consumer products. Started in 1983, Cyanotech has tried to exploit its technology for fast-growing microalgae by producing lines of nutritional supplements and other products.

Last month the company announced it was shifting to a more marketing oriented approach to derive higher profits from its spirulina and Astaxanthin products. At the same time the company said Cyanotech founder Gerald Cysewski would step down from his role as chairman, president and chief executive officer to become chief scientific officer.

Cyanotech has hired the executive search firm of Heidrick & Struggles to help find Cysewski's successor as CEO.

In the quarter ended Sept. 30 the company reported its net loss had narrowed to $344,000, or 7 cents a share, from $572,000, or 11 cents, a year earlier.

The better results were due in part to revenue increasing to $2.60 million from $2.48 million a year earlier. Cyanotech said sales climbed as its marketing emphasis shifted to human nutrition products and higher interest in its BioAstin natural Astaxanthin line.

Reach Greg Wiles at gwiles@honoluluadvertiser.com.

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