E&J Gallo will lay off 355 California employees and close its in-house distribution operations.
The move follows the announcement two weeks ago that Rpublic National Distributing Co. will handle distribution to chain retailers in California, effective March 1. In September RNDC began distributing to independent retail and liquor stores for Gallo.
"Gallo Sales Co. is optimistic that the majority of employees will have the opportunity to interview and be offered similar opportunities with RNDC. Employees may also apply for roles at E. & J. Gallo Winery," the company said, adding:
"RNDC has been a great distributor for Gallo brands nationally, and we look forward to expanding our relationship with them as we transition our chain business in California."