Modesto plant will reduce workforce amid industry downturn
G-3 Enterprises, a Modesto manufacturer of wine closures and related packaging, announced it will lay off 66 employees at its Santa Rosa Avenue facility, the company said in an email to employees and the public. The layoffs are scheduled to take effect on Oct. 6, according to the notice required under state and federal law.
The Modesto plant makes a range of products used by wineries, including natural and synthetic corks and screw caps, as well as labels and bottling services. In its emailed statement, Laura Bream, vice president for human resources, attributed the decision to a slowdown in the wine industry.
She said the company "will continue to be one of the region’s larger private employers."
G-3 was founded by third-generation members of the Gallo family; the family operates its main winery near the Modesto-area closure plant. While Gallo and related companies remain major employers in the sector, the local supplier network that supports winemaking has experienced repeated contractions over the past year.
Local ripple effects and available resources
The layoff notice said displaced workers can seek assistance from Stanislaus County Workforce Development for re-employment services. The company did not specify how many employees will remain at G-3’s other sites after the October reductions.
Local and regional supply-chain partners have faced several recent workforce reductions:
- Bronco Wine Co. cut 227 jobs last year out of about 750 workers.
- Gallo reduced staffing at its Turner Road plant near Lodi by 20 people in June.
- In February, Gallo cut 93 positions across five sites in Napa and Sonoma counties.
- In July 2025, 47 people lost jobs when Courtside Cellars in San Luis Obispo County closed.
| Company | Jobs cut | Location |
|---|---|---|
| G-3 Enterprises | 66 | Modesto (Santa Rosa Avenue) |
| Bronco Wine Co. | 227 | San Joaquin/Napa area |
| Gallo (Turner Road) | 20 | Near Lodi |
| Gallo (Feb cuts) | 93 | Napa & Sonoma counties |
| Courtside Cellars | 47 | San Luis Obispo County |
The job losses mirror broader trends in California wine production. The Wine Institute reported that total vineyard acreage in the state was 424,032 acres last year, down from a peak of 469,790 acres in 2013. Industry observers and company statements point to lagging consumer demand, particularly among younger adults, as one factor weighing on wineries and suppliers.
What this means for Modesto
Modesto residents may feel the impact in a number of ways: reduced hours or lost income for affected families, lower business for local vendors and carriers that support the plant, and possible declines in tax revenue and consumer spending if layoffs accumulate across the sector. G-3’s plant has been part of a network of manufacturing and service providers that supported wine production during decades of growth in California’s wine industry.
While G-3’s statement framed the cuts as a response to sector conditions, it also emphasized the company’s ongoing presence in the region. For the workers who will be displaced on Oct. 6, county workforce services are the immediate point of contact for job-search help, training referrals and unemployment resources.
As Modesto navigates further changes in the beverage and agricultural sectors, local officials and economic development agencies will be watching whether this round of reductions is an isolated contraction or part of a longer-term adjustment in regional employment linked to shifting consumer preferences and industry costs.
