E. & J. Gallo Winery Closing Production Facility, Cutting Jobs

Largest U.S. wine company shutting down one site and reducing staff at four other locations.

Published on Feb. 22, 2026

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E. & J. Gallo Winery, the largest wine company in the United States, has announced plans to close one of its wine production facilities and reduce staff at four other locations. The move will result in hundreds of job losses across the company's operations.

Why it matters

The closures and layoffs at Gallo, one of the most dominant players in the U.S. wine industry, reflect broader economic challenges facing the sector, including oversupply, shifting consumer preferences, and the lingering impacts of the COVID-19 pandemic on the hospitality and retail channels.

The details

Gallo did not specify which production facility will be closed, but said the layoffs will impact locations in Sonoma, Napa, and the Central Valley region of California. The company cited a need to "right-size" its operations and align its workforce with current business needs. Gallo is the world's largest family-owned winery and produces a wide range of wine brands at various price points.

  • The closures and layoffs were announced on February 18, 2026.

The players

E. & J. Gallo Winery

The largest wine company in the United States, producing a wide variety of wine brands across multiple price points.

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The takeaway

The Gallo news underscores the ongoing challenges facing the California wine industry, which has grappled with oversupply, changing consumer tastes, and the lingering effects of the pandemic. These factors are forcing even the largest players to reevaluate their operations and workforce to remain competitive.