California wine giant announces new layoffs as industry downturn continues

California’s wine industry continues to face mounting pressure, and the nation’s largest wine producer is making additional cuts. E. & J. Gallo Winery has announced another facility closure and round of layoffs, marking the latest chapter in a difficult period for the industry.

Gallo to close Lodi facility, cut 20 jobs

In June, E. & J. Gallo Winery announced plans to close its crush facility in Lodi, California, resulting in the loss of 20 jobs. The facility processes grapes into wine for growers and wineries that lack their own production capacity.

A company spokesperson said the decision reflects available capacity at Gallo’s other regional wineries, allowing the company to consolidate operations. Employees affected by the closure were notified individually and offered transition assistance as well as opportunities to pursue other positions within the organization.

The shutdown adds to a growing list of facility closures by the Modesto-based wine giant as it adapts to changing market conditions. California’s wine industry has struggled with declining alcohol consumption, shifting consumer preferences and weakening wine sales in recent years.

Nearly 100 workers affected by earlier layoffs

The latest cuts follow a much larger round of layoffs announced in February. At that time, Gallo revealed plans to permanently close its Ranch Winery production facility in St. Helena and reduce staffing at several additional locations in Napa and Sonoma counties.

The company said 93 employees would be affected across the Ranch Winery, Louis M. Martini Winery, Orin Swift tasting room, J Vineyards and Frei Ranch operations. The Ranch Winery closure alone impacted 56 workers. Gallo cited evolving consumer demand, excess winery capacity and long-term business strategy as reasons for the reductions.

Wine industry faces prolonged challenges

Gallo’s workforce reductions mirror broader struggles throughout California’s wine sector. Multiple producers have announced layoffs, facility closures and operational consolidations as the industry works through declining demand and an oversupply of grapes.

Industry forecasts suggest wine sales could remain under pressure through 2026 before conditions begin to stabilize in the years ahead.

Links on this page may be affiliate links, for which the site earns a small commission, but the price for you is the same