California’s wine industry continues to face mounting pressure, and the nation’s largest wine producer is making additional cuts. E. & J. Gallo Winery has announced another facility closure and round of layoffs, marking the latest chapter in a difficult period for the industry.
Gallo to close Lodi facility, cut 20 jobs
In June, E. & J. Gallo Winery announced plans to close its crush facility in Lodi, California, resulting in the loss of 20 jobs. The facility processes grapes into wine for growers and wineries that lack their own production capacity.
A company spokesperson said the decision reflects available capacity at Gallo’s other regional wineries, allowing the company to consolidate operations. Employees affected by the closure were notified individually and offered transition assistance as well as opportunities to pursue other positions within the organization.
The shutdown adds to a growing list of facility closures by the Modesto-based wine giant as it adapts to changing market conditions. California’s wine industry has struggled with declining alcohol consumption, shifting consumer preferences and weakening wine sales in recent years.
Nearly 100 workers affected by earlier layoffs
The latest cuts follow a much larger round of layoffs announced in February. At that time, Gallo revealed plans to permanently close its Ranch Winery production facility in St. Helena and reduce staffing at several additional locations in Napa and Sonoma counties…