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Torani CEO says layoffs are a choice, reveals how company avoided job cuts even during Covid-19
Torani CEO Melanie Dulbecco said layoffs were a choice and explained how the company protected jobs during Covid-19.
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Melanie Dulbecco, CEO of US-based syrup manufacturer Torani, believes layoffs are often a choice rather than an unavoidable business decision. Despite economic uncertainty, technological changes and the Covid-19 pandemic, the company has maintained its commitment to retaining employees while expanding its operations.
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Speaking to Business Insider, Dulbecco explained how Torani has grown from a business generating $700,000 annually to one targeting more than $800 million in revenue in 2026, without resorting to layoffs.
'Layoffs are a choice'
Dulbecco joined Torani in 1991 as its ninth employee and became its first CEO in 1995. The California-headquartered company now employs more than 500 people.
Reflecting on the company's approach to workforce management, she said, "It's very easy for us to say layoffs are not our approach. I think layoffs are a choice."
She acknowledged that businesses facing bankruptcy may have to make difficult decisions. However, she argued that cutting jobs purely to improve financial performance could weaken a company's ability to recover and grow.
According to Dulbecco, Torani has recorded average annual growth of 20%, with employee collaboration and long-term stability playing important roles in its expansion.
How Torani avoided layoffs during Covid-19
The company's commitment was tested in March 2020, when pandemic restrictions coincided with its planned relocation to a new manufacturing facility in San Leandro.
Torani had borrowed heavily to build the factory, with loan repayments approaching as businesses shut down.
Instead of reducing its workforce, management decided to eliminate non-essential expenses, cut advertising costs and suspend company travel.
The company initially prepared for a 50% decline in sales. However, revenue fell by 20% in April before recovering in May.
Torani subsequently shifted its focus towards online retail and grocery sales, ending 2020 with a 15% year-on-year revenue increase.
What she said about AI replacing workers
Dulbecco also addressed concerns surrounding artificial intelligence and automation.
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She acknowledged that Torani currently hires fewer employees than it would without automation. The company uses AI for market research, sales forecasting and demand planning.
However, she maintained that technology is intended to reduce repetitive tasks and create better career opportunities rather than eliminate existing jobs.
She attributed employees' confidence in adopting new technologies to the company's longstanding commitment to job security, arguing that retaining experienced teams strengthens collaboration and resilience during challenging periods.
