Danish eco-ferry operator Forsea Ferries is laying off 70 staff members as it continues to struggle with low passenger and vehicle numbers.
The company saw traffic decline 80% in the early days of lockdown in Denmark and Sweden.
This figure is now 40% after the countries opened up again.
But chief executive Kristian Durhuus told the Dagens Industri newspaper that this is still far from satisfactory.
"It is a very sad decision, but necessary," he added.
"We need to look at our capacity and staffing needs going forward. It is unsustainable to continue with all our current staff when our traffic volumes have fallen so sharply."
The company has 500 full-time employees.
Durhuus took the CEO job in June, after being chief operating officer at Copenhagen Airports.
Battery power in focus
The company is aiming to reach zero CO2 emissions for its fleet of five vessels.
It has already equipped two ropaxes with battery power.
They were converted from conventional diesel engines and are the world's biggest battery-operated vessels.
The new technology cuts emissions by about 65% or the equivalent of 23,000 tonnes of carbon dioxide per year, ForSea has said.
The former HH-Ferries became ForSea in 2018 to reflect its green agenda. It had merged with Scandlines in Denmark in 2010.
The operator runs ships between Helsingor and Helsingborg.
The company is owned by European infrastructure fund First State Investments.
