Wine giant Gallo closing Napa Valley facility, laying off dozens of workers

California wine industry leader Gallo has announced plans to close one of its production facilities in the Bay Area, resulting in the layoffs of nearly 100 employees across multiple wineries and tasting rooms in Napa and Sonoma counties. The company, known as the largest wine producer in the world by volume, made the decision to permanently shut down its Ranch Winery in St. Helena, leading to 56 workers losing their jobs. Additional layoffs will occur at the Louis M. Martini Winery, Orin Swift Tasting Room in St. Helena, and J Vineyards and Frei Ranch in Healdsburg, affecting a total of 37 positions.

The official Worker Adjustment and Retraining Notice was filed on Feb. 12, with the closure set to take effect by April 15. A spokesperson for Gallo stated, “Gallo is aligning parts of our operations with our long-term business strategy to ensure we remain well-positioned for future success. As part of this process, we made the difficult decision to reduce certain Wine Country operations. These changes are driven by market dynamics, evolving consumer demand, and available capacity across our wineries.”

All impacted employees will receive support, transition packages, and opportunities to explore other roles within the company. This move follows the closure of Gallo’s Courtside Winery in San Luis Obispo County in September 2025, which resulted in the loss of 47 jobs. The company emphasized that these layoffs and closures will not significantly impact its tasting rooms in Napa, Sonoma, and San Luis Obispo counties.

Established in 1933 by brothers Ernest and Julio Gallo, the Modesto-based company is the largest family-owned winery in the U.S., boasting a portfolio of over 100 wine labels, including popular brands like Apothic, Barefoot Cellars, and Ravenswood. In 2024, the company rebranded from E&J Gallo Winery to Gallo to better reflect its diverse portfolio, which also includes spirits like New Amsterdam vodka and gin, Camarena Tequila, and Diplomatico Rum.

Gallo has been expanding its premium wine offerings in recent years while streamlining operations and divesting certain facilities. The latest changes come amidst a decline in alcohol consumption among Americans, with concerns about the potential health risks associated with even moderate drinking. A Gallup survey conducted in August 2025 revealed that only 54% of adults in the U.S. reported consuming alcoholic beverages, marking the lowest percentage in nearly a century.

Furthermore, Gallo has been focusing on enhancing its ready-to-drink cocktail brands like High Noon and Salt Point, as well as acquiring renowned vineyards to strengthen its luxury wine portfolio. The company’s strategic realignment reflects its commitment to adapting to evolving consumer preferences and market trends.