Wine Giant Gallo to Shutter Napa Facility, Lay Off 93

Modesto-based company cites market shifts and changing customer demands as reasons for the closures and job cuts.

Published on Feb. 28, 2026

Got story updates? Submit your updates here. ›

California wine conglomerate E. & J. Gallo Winery announced it will be shutting down a major wine production facility in Napa Valley and laying off 93 employees across five sites. The Modesto-based company cited the need to adapt to evolving market dynamics and shifting customer preferences as the driving factors behind the facility closure and job reductions.

Why it matters

Gallo is one of the largest wine producers in the world, and its decision to shutter a key Napa facility signals broader changes in the wine industry. The closure reflects the challenges facing traditional wine companies as consumer tastes evolve and competition from alternative beverages intensifies.

The details

The 93 job cuts will impact employees across five Gallo sites, with the majority coming from the closure of a major wine production facility in Napa Valley. Gallo said the move is necessary to adapt to shifting market conditions and changing customer demands, though the company did not provide specifics on the factors driving the changes.

  • Gallo announced the layoffs and facility closure on February 20, 2026.

The players

E. & J. Gallo Winery

One of the largest wine producers in the world, headquartered in Modesto, California.

Got photos? Submit your photos here. ›

The takeaway

Gallo's decision to shutter a major Napa facility and lay off nearly 100 workers reflects the broader challenges facing traditional wine companies as consumer preferences shift and competition from alternative beverages intensifies. The closure signals the need for established wine producers to adapt their business models to changing market dynamics.