California Winemakers Facing Layoffs
California’s renowned wine industry is experiencing significant setbacks.
Another key player in this famous wine-producing region has announced it will shut down operations and cut jobs, marking the fourth such closure since the beginning of 2026.
Jackson Family Wines recently ceased operations at its Carneros Hill facility in Sonoma and let go of over a dozen employees, as indicated by a Worker Adjustment and Retraining Notice submitted to California authorities on February 12.
Communications Director Sean Carroll explained that the Carneros Hill site, previously operated by Buena Vista Winery, “served as an overflow production capacity and was not tied to a specific brand.”
He mentioned that the decision to consolidate was driven by the fact that the location was “underutilized.”
Jackson Family Wines is recognized as one of the largest wine producers in the U.S., ranking as the sixth largest wine company nationwide.
The company owns the Kendall-Jackson label, along with around 40 other brands, and reportedly produces about 6 million cases annually. More than 25 of these wineries are located within California.
Just last week, Gallo, another prominent winemaker, announced the closure of a major production facility and the elimination of about 100 jobs in both Napa and Sonoma counties.
Gallo, which is considered the largest winemaker in the world by production, filed a “warning” notice with the California Employment Development Department on February 12, confirming the permanent closure of its Ranch winery in St. Helena.
Additionally, Gallo is reducing its workforce at other labels, including Louis M. Martini Winery and Olin Swift Tasting Room in St. Helena, as well as J. Vineyards and Fry Ranch in Healdsburg.
“Gallo is aligning portions of our business with our long-term business strategy to remain well-positioned for future success,” a spokesperson stated.
“This decision also comes as we reduce operations in certain wine country locations, driven by market dynamics, changing consumer demand, and our available production capacity.”
Earlier this month, Foley Family Wine & Spirits announced the closure of its production facility at the historic Central Coast winery Chalone.
Additionally, Constellation Brands informed over 200 employees at Mission Bell Winery in Madera earlier in January about job losses. The Jean-Charles Boisset Collection has also closed two tasting rooms in Napa Valley.
Recent statistics from Wine Business Monthly show that the number of wineries in California decreased from 4,727 in 2025 to 4,646 by February 2026.
Further, an August 2025 Gallup poll revealed a decline in the number of American adults who consume alcohol, dropping to 54%.
