Torani CEO Melanie Dulbecco says the San Leandro syrup maker has never laid off employees, a choice she believes helped the company preserve its team through the pandemic. In a Business Insider interview, Dulbecco argues that “we’ve never done” layoffs because she sees them as a management decision except in circumstances such as bankruptcy.
Dulbecco joined Torani as its ninth hire in 1991 and became its first CEO in 1995. The company now has more than 500 employees, according to her account. Torani made $700,000 in annual revenue when she started, and she said it has grown 20% a year on average. The company plans to exceed $800 million in revenue this year.
Why Torani Says “We’ve Never Done” Layoffs
Dulbecco said she understands that a company in bankruptcy may face extremely difficult choices. Outside that situation, she views layoffs as a financial exercise that can overlook how a business might regain momentum with its team. She described Torani’s approach as building an “opportunity company,” with growth treated as an outcome of shared work rather than a financial goal by itself.
She also said Torani uses automation to reduce manual, repetitive jobs with limited career mobility. The company is hiring fewer people than it would without automation, she said, and also uses artificial intelligence for consumer and market research, sales forecasting and demand planning. Dulbecco said employees trust that the company will automate and elevate work without eliminating opportunities.
That emphasis on collaboration connects with CEO Official Mag’s coverage of a leadership workshop for founders. Dulbecco said teamwork, resilience and addressing challenges together are especially important during periods of rapid growth. She said the approach has also supported employee retention.
A Pandemic Decision Made as One Team
Torani’s no-layoff position faced a test in 2020. The company had planned to move to a new San Leandro location in March, as stay-at-home orders began. It had borrowed money to build a flavor factory, and loan payments were due to start in April, Dulbecco said.
Before deciding what to do, the executive team discussed what would make them proud after the crisis. They chose to get through it together without layoffs or furloughs. The company cut marketing and advertising expenses, paused travel, and asked every department to review budgets and remove costs it considered nonessential.
Torani prepared for sales to fall 50% during the early months of the pandemic. Dulbecco said sales fell 20% in April 2020, then revenue was back up in May. With cafes and drink shops closed, the company shifted toward online retail and grocery sales. Torani ended 2020 with a 15% year-over-year revenue increase, according to her account.
The relocation took six months instead of six weeks, but the company completed it, she said. Dulbecco said keeping the team together mattered to making that move possible. Her account fits a broader discussion of leadership transitions and continuity, including CEO Official Mag’s reporting on succession planning when CEOs leave.
Layoffs as a Leadership Choice
Dulbecco’s view is that leaders should weigh what a team can accomplish together before treating job cuts as a routine financial response. Her account does not claim that every company can avoid layoffs; she specifically acknowledged bankruptcy as an exceptional case. It does lay out how Torani responded to its own immediate pressures: budget reductions, a pause in travel, and a pivot to different sales channels.
That perspective also relates to CEO Official Mag’s account of a CEO defending company choices during layoffs. Dulbecco’s example centers on a different outcome: Torani kept employees through the disruption and later reported revenue growth for 2020. The company plans to exceed $800 million in revenue this year, she said, while continuing to use automation in selected work.