The wine industry is facing another round of job cuts as a California company announces plans to permanently eliminate dozens of positions. The latest layoffs come as wine producers and suppliers contend with changing consumer habits, weaker demand, and rising operating costs.
G3 Enterprises, a Modesto, California-based company serving the wine, beverage, food, and agriculture industries, plans to permanently lay off 66 employees by the end of 2026. The affected workers are primarily involved in the production of beverage closures at one of the company’s Modesto operations.
Layoffs tied to beverage closures
The company provides a wide range of services and products to the beverage industry, including corks, caps, bottles, labels, packaging equipment, and transportation. G3’s website identifies its Modesto location on Santa Rosa Avenue as its closures operation.
However, the layoffs do not mean G3 is shutting down its entire Modesto operation. The company said the affected production unit is being restructured, while other parts of its business, including transportation services, remain unaffected.
A G3 Enterprises spokesperson attributed the decision to broader challenges affecting the wine industry. Consumers have been changing their purchasing habits, while inflation and higher costs have added pressure throughout the sector. The company said those conditions have contributed to lower production volumes and the need to restructure operations.
Another setback for California’s wine industry
The announcement is the latest sign of strain across California’s wine sector, which has faced declining consumption and shifting preferences in recent years. Several California wineries have laid off employees this year due to changing consumer trends and reduced alcohol consumption.
For the 66 employees facing permanent layoffs by the end of 2026, the changes mark another difficult chapter for workers tied to California’s longstanding wine industry.
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