Gallo Site Closings And Layoffs In Napa Valley, Sonoma County

HEALDSBURG, CA — Gallo, the largest U.S. wine company, is closing multiple sites in Napa and Sonoma counties, including a tasting room and production sites, cutting a total of 93 jobs.
The 70-acre Ranch Winery in St. Helena, purchased by Gallo in 2015, will permanently shut down, affecting 56 employees, according to a Worker Adjustment and Retraining Notice filed with California authorities.

Additional layoffs are planned in winemaking, hospitality, and culinary departments at Louis M. Martini Winery and the Orin Swift tasting room in St. Helena, and at J Vineyards and the Frei Ranch in Healdsburg.

“Gallo is aligning parts of our operations with our long‑term business strategy to ensure we remain well‑positioned for future success,” the company said in a statement published in the San Francisco Chronicle and other outlets. “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.”

The closings follow a two-year path for Gallo amid a global wine industry slump attributed to falling sales and grape oversupply. In 2024, Gallo sold the Edna Valley facility in San Luis Obispo and the Wild Horse winery in Templeton, and last July, the company shut down Courtside Winery in San Miguel, eliminating 47 jobs, according to reports. In 2025, Gallo acquired the Gen Z-focused brand Whiny Baby.

The move by Gallo is attributed to industry consolidation following over-expansion during COVID. The Chronicle, for example, reported that the Foley Family Wines & Spirits recently closed its Central Coast Chalone facility and laid off all staff, Trinchero Family Wine & Spirits listed two major vineyards for sale, and Treasury Wine Estates, the nation's seventh-largest wine company, paused dividend payments after a write-down and a 17 percent drop in U.S. revenue over six months.