Jackson Family Wines halted production at its Carneros Hill facility, laying off over a dozen employees, while Gallo Winery, the nation’s largest wine producer, shuttered its St. Helena Ranch Winery and cut jobs at multiple labels. Both closures followed Worker Adjustment and Retraining Notices filed with California authorities, signaling a wave of consolidation in Napa Valley. Jackson Family Wines, owner of the iconic Kendall-Jackson brand, owns 40+ labels and produces 6 million cases annually, while Gallo employs hundreds across its operations. A third winery, Foley Family Wines, also closed its Central Coast facility, bringing the total closures to four since January 2026. California’s wine industry, home to 4,646 wineries as of February 2026 (down from 4,727 in 2025), faces mounting pressure from shifting consumer habits, with only 54% of adults reporting alcohol consumption in 2025. Economic impacts ripple through the region as firms cite market dynamics and capacity issues to justify layoffs. Napa Valley’s storied reputation as a global wine hub now grapples with workforce reductions and operational realignments.