Gallo to lay off 355 staff across California
Papers filed with California’s Employment Development Department reveal that EJ & Gallo is planning to make more than 300 staff redundant, effective of 12 March according to the drinks business .
The documents were filed on 10 January following the wine giant finalising a deal with Republic National Distribution Co. to manage Gallo’s retail distribution, which was previously looked after in-house.
Republic National, which has been embroiled in a battle with Sazerac for almost a year, took over Gallo’s independent market distribution in 2021.
According to a report by the San Francisco Business Times, Gallo plans to close its own distribution facilities, including its 68,000 square foot warehouse, in March. Layoffs will effect staff at seven different sites around the state.
The company has said that employees will have the chance to interview for similar positions with RDNC or apply for new roles at Gallo.
Many have been left reeling by the news, especially in light of significant successes for EJ & Gallo in the last year.
In January 2021, EJ & Gallo completed one of the biggest acquisitions in US wine history, snapping up 30 low-cost brands from rival company Constellation Brands for US$810 million. According to reports at the time, the move meant that Gallo brands represented almost 30% of all bottles of wine produced in California, making it the biggest wine producer by sales volume in the US.
This year, Gallo has signed a multi-year deal with the NFL to become the football league’s official wine sponsor, which will ensure its visibility before, during and after the game on Sunday 12 February.