California wine giant Gallo to close winery, lay off dozens of workers

(KRON) — Gallo, the largest winemaker in the United States, plans to close down a Napa Valley production facility and lay off dozens of workers across Napa and Sonoma counties. The winemaking giant plans to permanently close the Ranch Winery at 105 Zinfandel Lane in Saint Helena.

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That closure will result in 56 people losing their jobs permanently. Additionally, Gallo plans to cut 37 jobs across four other facilities in Saint Helena and Healdsburg. Those job cuts are also permanent, according to a state filing with the Employment Development Department.

United Farm Workers President Arturo Rodriguez, right, speaks as Gallo wine is poured Wednesday, Sept. 14, 2005, in San Francisco. (AP Photo/Ben Margot)

The jobs cuts were announced last week and are set to take effect on April 15.

The downsizing at Gallo comes in the midst of strong headwinds facing the wine industry as a whole. Changing drinking habits, including a decrease in wine and alcohol consumption among younger people, have seen the wine industry struggling in the Bay Area and beyond.

In a statement to KRON4.com, Gallo said the layoffs and closures were “driven by market dynamics, evolving consumer demand, and available capacity across our wineries.”

Impacted employees are receiving personalized support, transition packages and opportunities to explore other roles within Gallo, the winemaker also said. Gallo said the layoffs and closures will have no impact on its tasting rooms in Napa, Sonoma and Paso Robles.

Alex Baker

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