In a major shakeup for California’s wine industry, E. & J. Gallo Winery has announced it will permanently shut down its Courtside Cellars facility in San Miguel, triggering layoffs for 47 employees starting in September 2025. The closure will be finalized by December 1, 2025.
As the largest wine producer in the U.S., Gallo’s decision is making waves not just locally, but statewide. For the affected workers, this layoff isn’t just business—it’s personal. At Employees First Labor Law (EFLL), we’re here to help ensure that laid-off employees understand their rights under state and federal law, including the WARN Act, and know how to protect themselves during this transition.
📍 Closure Details
- Facility: Courtside Cellars, San Miguel (San Luis Obispo County)
- Company: E. & J. Gallo Winery
- Layoffs Begin: September 2025 (Phase 1)
- Final Closure Date: December 1, 2025
- Total Affected Employees: 47
- Layoff Schedule: Two waves — September and January
Gallo has also recently downsized its Central Coast footprint, selling or closing facilities in Edna Valley and Templeton. Despite this, it has retained some brands and limited production in the region.
Why Is Gallo Downsizing?
The decision by E. & J. Gallo Winery to shutter its Courtside Cellars facility is not an isolated event—it reflects deeper structural problems across the U.S. wine industry that are accelerating layoffs, closures, and consolidations across California.
1. Declining Domestic Wine Consumption
Over the past five years, U.S. wine consumption has either stagnated or declined, especially among younger consumers:
- Millennials and Gen Z drink less wine than previous generations, often favoring craft cocktails, hard seltzers, cannabis, or non-alcoholic alternatives.
- A 2024 report from Silicon Valley Bank’s Wine Division found that Americans over 60 now account for over 50% of wine purchases, raising long-term sustainability concerns.
- This shift has left major producers like Gallo with excess capacity and shrinking retail demand for mid-market brands.
2. Retail Consolidation & Distributor Disruption
Retail shelf space for wine is increasingly dominated by a handful of national players—Costco, Total Wine, Walmart, and Target. At the same time:
- Republic National Distributing Company (RNDC) and Southern Glazer’s Wine & Spirits now control a disproportionate share of the distribution pipeline.
- These gatekeepers drive tighter margins, more aggressive pricing, and fewer SKUs for producers—especially those in the Central Coast and mid-tier markets.
- In 2023, Gallo laid off 355 employees statewide after outsourcing a large part of its California distribution to RNDC.
3. Changing Alcohol Preferences
Consumer tastes have shifted away from traditional varietals like Chardonnay and Cabernet Sauvignon toward:
- Ready-to-drink cocktails (RTDs)
- Craft spirits
- Hard seltzers and low-ABV beverages
This change has disrupted longstanding business models for legacy wine brands, particularly those relying on supermarket sales or bulk distribution through restaurant chains.
4. Surplus Grape Supply & Market Saturation
California has faced an oversupply of wine grapes—particularly in the Central Coast and Lodi regions:
- Prices for bulk wine have dropped sharply, leaving producers with inventory they can’t move profitably.
- Lower-quality juice floods the market, depressing prices across all tiers and making smaller facilities (like Courtside Cellars) less sustainable.
- Gallo and others have responded by reducing their vineyard contracts, canceling grower agreements, and shedding production sites.
A Broader Industry Reckoning
The Courtside Cellars closure is just one in a cascade of workforce reductions across the wine industry:
| Company | Location | Reported Layoffs |
|---|---|---|
| Delicato Family Wines | Manteca, CA | Dozens of operational staff |
| Bronco Wine Company | Ceres, CA | Over 100 layoffs since 2022 |
| Jackson Family Wines | Santa Rosa, CA | Multiple production shifts closed |
| Republic National Distributing (RNDC) | California | Restructured routes and layoffs |
| Duckhorn Vineyards | Napa Valley | Quiet cuts to sales & marketing teams |
These actions represent more than belt-tightening—they signal a potential realignment of the entire wine supply chain, away from labor-intensive, diversified production and toward centralized, high-volume hubs.
WARN Act: Your Right to Advance Notice
If you’re one of the 47 impacted workers, the federal WARN Act (Worker Adjustment and Retraining Notification Act) may apply.
What is the WARN Act?
The WARN Act protects workers by requiring large employers to give at least 60 days’ advance written notice before a plant closure or mass layoff.
For the WARN Act to apply:
- The employer must have 100+ full-time employees.
- The layoff must impact 50 or more employees at a single site.
Although the 47 layoffs at Courtside Cellars fall just under the federal threshold, California has its own “Mini-WARN” Act that lowers the trigger to as few as 50 total employees statewide. Because E. & J. Gallo employs thousands across California, they are likely subject to both federal and state WARN notice obligations.
What If Gallo Violated the WARN Act?
If you didn’t receive at least 60 days’ written notice, or if your notice was unclear or delayed, you may be entitled to:
- Back pay for each day of the violation period
- Unpaid health, vacation, and retirement benefits
- Penalties assessed against the employer
What Should You Do if You Were Laid Off?
✅ 1. Get a Copy of Your WARN Notice
Under California law, you’re entitled to receive a clear, written WARN letter stating:
- The layoff date(s)
- Whether the job loss is temporary or permanent
- Contact info for company representatives
If you haven’t received one, that’s a red flag.
✅ 2. Review Your Final Paycheck & Severance
Make sure it includes:
- All earned wages through your last day
- Accrued but unused vacation or PTO (if policy allows)
- Any bonuses or reimbursements owed
If Gallo offers a severance agreement, do not sign it right away. Many contain waivers that limit your right to sue for wage violations, discrimination, or retaliation. Always consult an employment attorney before signing.
✅ 3. Request Your Employment Records
Under Labor Code § 1198.5, you have a right to:
- Your complete personnel file
- All wage statements (Labor Code § 226)
- Commission, bonus, or incentive payment records
These documents may help uncover illegal wage practices, retaliation, or discriminatory conduct.
🚩 Could the Layoff Be Illegal?
Even in a plant closure, layoffs must comply with federal and state employment laws. You may have a legal claim if you were:
- Targeted due to age, disability, gender, race, or pregnancy
- Retaliated against for complaining about harassment, safety issues, or wage violations
- Let go while on protected medical leave (e.g., FMLA/CFRA)
- Denied reasonable accommodation for a medical condition
- Replaced by a lower-paid or younger employee before the closure
If you suspect foul play, your layoff might not just be unfair—it might be illegal.
We Put Workers First—Always
At Employees First Labor Law, we’ve helped thousands of workers stand up to corporate giants. Whether it’s unpaid wages, a retaliatory firing, or WARN Act violations, we have the experience to fight and win.
At Employees First Labor Law, we fight for workers across California to make sure your rights are respected, your body is protected, and your benefits are maximized.
