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Sapporo USA CEO Zach Keeling confirms 220 workers will be laid off as the company winds down its Escondido brewery operations.

Sapporo USA CEO Zach Keeling announced that the company will lay off 220 workers at its three Escondido, California locations as production shifts to other regions. The first phase of layoffs, affecting 58 employees including brewers, warehouse, and logistics workers, will begin on October 19, 2026. These cuts follow the sale of the Stone Brewing brand to Firestone Walker Brewing Company and Duvel Moortgat USA, which acquired the brand and several hospitality locations but excluded the Escondido sites. Zach Keeling stated that the Escondido brewery and bistro were closed because the company failed to find a viable long-term solution for the property. The move comes as the craft beer industry faces a national trend of declining alcohol consumption and the impact of the COVID-19 pandemic. While the production moves to Paso Robles and Kansas City, the Liberty Station location in San Diego will remain an active brewery and hospitality venue. The administration announced that the transition will be managed in phases to support the community and employees during the shift.

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