Torani CEO Melanie Dulbecco said her 101-year-old company never laid off workers, even when revenue fell 20% in April 2020. While Microsoft offers voluntary buyouts to 60,000 employees, Dulbecco argued that firing staff is a choice. She said, “I think layoffs are a choice,” and businesses should cut costs elsewhere.
Synopsis
As Microsoft offers voluntary buyouts to around 60,000 employees amid heavy AI investment, the CEO of a 101-year-old syrup maker says businesses should look for savings beyond job cuts. Torani says it has never laid off workers, including during the pandemic, when revenue fell 20% in a single month.
As Microsoft offers voluntary buyouts to around 60,000 employees, the CEO of a 101-year-old American company says businesses can look for ways to reduce expenses without laying off workers. Melanie Dulbecco, CEO of flavoured syrup maker Torani, says the company has never conducted layoffs in its 101-year history. Torani also retained its workforce during the COVID-19 pandemic, when its revenue fell 20% in April 2020, according to Dulbecco.
Speaking to Business Insider, Dulbecco said layoffs were a choice rather than an inevitable response to financial pressure. She acknowledged that businesses facing bankruptcy might have little alternative, while arguing that retaining employees can help companies recover from setbacks.
Microsoft offers voluntary buyouts to around 60,000 employees
Microsoft has introduced a voluntary exit offer for eligible employees at internal level 70 and below in selected teams across the United States, India, the United Kingdom and Canada.
The programme covers participating divisions including AI experiences, Copilot, finance, human resources, Xbox, and Windows + Devices. Some teams, including marketing, commercial business and security, are excluded.
Eligible employees have until early December to decide whether to accept the offer, with departures expected at the end of the year. The package provides financial support to employees who choose to leave voluntarily.
Live Events
The offer follows Microsoft's earlier voluntary retirement programme in 2026. The company also announced around 4,800 job cuts in July as part of changes to its Xbox gaming business.
Torani CEO says layoffs are a choice
Dulbecco told Business Insider that Torani had never conducted a layoff during its 101-year history.
“It's very easy for us to say layoffs are not our approach. I think layoffs are a choice,” she said.
She acknowledged that companies approaching bankruptcy may have limited options. In other circumstances, she said, cutting jobs could affect a company's ability to regain momentum.
“I think it's a financial exercise that doesn't consider how you're going to be resilient or regain momentum—because you do that with a team,” Dulbecco said.
How Torani avoided layoffs during the COVID pandemic
Torani faced financial pressure in 2020 after borrowing heavily to build a new manufacturing facility in California, just as the COVID-19 pandemic disrupted its business.
Coffee shops and other drink outlets closed, affecting demand for its products. The company also had to manage the transition to its new factory.
Instead of laying off or furloughing employees, Torani reduced marketing and advertising expenditure, paused business travel and asked departments to review their budgets for non-essential spending.
The company also expanded its online retail and grocery business to compensate for lost sales from coffee shops and other outlets.
According to Dulbecco, revenue fell 20% in April 2020 before recovering in May. Revenue for the full year increased 15% year on year.
Torani mapped employees' homes before relocating
Torani's workforce policy also influenced its factory relocation plans.
The company moved its operations to San Leandro in 2020. Before selecting the location, it mapped employees' home ZIP codes to identify a site that would allow workers to commute a reasonable distance.
The company aimed to retain 100% of its workforce during the move. Torani's published account of the relocation also states that it hired 40 additional team members in 2020.
Torani uses AI and automation
Torani uses artificial intelligence for market research, sales forecasting and demand planning, Dulbecco told Business Insider.
She said automation allows the company to operate with fewer employees than it would otherwise need, reducing the need for additional hiring.
Dulbecco said employees trust the company to use technology to improve their work while preserving career opportunities.
“Our team doesn't get worried about things like AI because they trust that we will both automate and elevate the work, that we will never do anything that squashes opportunities for people, and that we are looking out for everybody's success,” she said.
In a September 2026 interview with Fortune, Dulbecco said Torani had averaged approximately 20% annual revenue growth over 35 years.
She also said the company expected revenue to exceed $800 million in 2026.
Torani's experience includes its factory relocation, the pandemic-related disruption to sales and the adoption of automation and AI in business operations. Dulbecco has said the company intends to continue using technology while maintaining its approach to employee retention.
(You can now subscribe to our Economic Times WhatsApp channel)
KYC and KYB: Inside Damani’s Avenue Supermarts that refuses to charge more – Part 1 of 3
Will oil turn into a lingering problem? Is the world economy, India, or the market prepared?
KYB and KYC: Business behind the wealth creator called ‘Divi’s Lab’ – Part 2, concluding
KYB and KYC: Business behind the wealth creator called “Divi’s Lab” – Part 1
The global business of promising more
One company, 2 words. Bond yield and CDS: Will they decide the fate of global markets?