Winemakers are pulling the cork off California.
Another giant in the world-famous wine region is closing and cutting jobs, the fourth since early 2026.
Jackson Family Wines has halted production at its Carneros Hills plant in Sonoma’s Carneros area and laid off more than a dozen employees, according to a worker adjustment and retraining notice filed with California authorities on Feb. 12.
Communications Director Sean Carrol told the San Francisco Chronicle that Carneros Hill (formerly owned by Buena Vista Winery) “serves as excess capacity and is not tied to any particular brand.”
He added that the site was “underutilized,” allowing the company to consolidate.
Jackson Family Wines is known as one of the top wine producers in the United States and the sixth largest wine company in the United States.
The company, which owns the Kendall-Jackson brand and about 40 other brands, produces about 6 million cases a year, according to industry reviews. More than 25 of these wineries are located in the Golden State.
Last week, major winemaker Gallo announced the closure of a large production facility and the elimination of nearly 100 jobs in the wine-growing regions of Napa and Sonoma counties.
Gallo, considered the world’s largest winemaker by volume, filed a “WARNING” notice with the California Employment Development Department on February 12 confirming that it will permanently close Rancho St. Helena Winery.
Gallo has also cut staff at a number of other brands, including Louis M. Martini Winery and Orin Swift Tasting Room in St. Helena, as well as J Vineyards and Frei Ranch in Healdsburg.
“Gallo is aligning parts of our business with our long-term business strategy to ensure we are well-positioned for future success,” a company spokesperson told The Washington Post.
“As part of this process, we have made the difficult decision to reduce certain wine country operations. These changes are driven by market dynamics, changing consumer demand, and available capacity at our wineries.”
Earlier this month, Foley Family Wines & Spirits closed its production facility at historic Central Coast winery Chalone.
In January, Constellation Brands notified more than 200 people at Mission Bell Winery in Madera that they would lose their jobs. The Jean-Charles Boisset Collection has closed two Napa Valley tasting rooms.
According to a recent report from Wine Business Monthly, there will be 4,727 wineries in California in 2025. As of February 2026, the number is 4,646.
According to an August 2025 Gallup poll, the number of U.S. adults who say they drink alcohol has dropped to 54%.