California wine giant Gallo is set to close one of its Bay Area production facilities, laying off nearly 100 workers there and at four other wineries and tasting rooms in Napa and Sonoma counties, the company announced.

Gallo, the largest wine producer in the world by volume, announced the cuts in a Worker Adjustment and Retraining Notice filed with the state. The company will permanently close its Ranch Winery in St. Helena, resulting in 56 workers losing their jobs. Other layoffs at the Louis M. Martini Winery and Orin Swift Tasting Room in St. Helena, and at J Vineyards and Frei Ranch in Healdsburg, will total another 37 positions.

The notice was filed on Feb. 12 and will be effective by April 15.

"GALLO is aligning parts of our operations with our long?term business strategy to ensure we remain well?positioned for future success," a Gallo spokesperson told CBS News in an emailed statement. "As part of this process, we made the difficult decision to reduce certain Wine Country operations. These changes are driven by market dynamics, evolving consumer demand, and available capacity across our wineries."

All the affected employees will receive support, transition packages, and opportunities to explore other roles with the company, the spokesperson said.

In September 2025, Gallo also closed its Courtside Winery, a production facility just north of Paso Robles in San Luis Obispo County, resulting in the loss of 47 jobs. The spokesperson said the layoffs and closures "do not materially impact" its tasting rooms in Napa, Sonoma, and San Luis Obispo counties.

Founded in 1933 by brothers Ernest and Julio Gallo, the Modesto-based company is also the largest family-owned winery in the U.S. and owns over 100 different wine labels, including top-selling wines such as Apothic, Barefoot Cellars, Clos du Bois, Ecco Domani, MacMurray Estate, and Ravenswood. In 2024, the company changed its name from E&J Gallo Winery to simply Gallo to better reflect its portfolio, which includes spirits such as New Amsterdam vodka and gin, Camarena Tequila, and Diplomatico Rum.

Gallo also owns ready-to-drink cocktail brands such as High Noon and Salt Point. In recent years, Gallo has sought to expand its premium wine offerings while consolidating some of its operations and selling or closing other facilities.

The latest changes to Gallo's operations come as fewer Americans report drinking alcohol amid concerns that even moderate alcohol consumption may be harmful to one's health. A Gallup survey in August 2025 found that 54% of adults in the U.S. drink alcoholic beverages, the lowest percentage in 90 years.

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