CEO of 101-Year-Old Company That Has Never Laid Off Workers Says Mass Layoffs Are a Choice, Not a Necessity

As US employers continue to announce job cuts, Torani CEO Melanie Dulbecco is challenging the idea that layoffs are an inevitable response to financial pressure. The 101-year-old syrup maker has never conducted layoffs, she says, arguing that retaining employees can help businesses weather financial uncertainty and recover from setbacks.

'It's very easy for us to say layoffs are not our approach. I think layoffs are a choice,' Dulbecco told Business Insider in a recent interview. She acknowledged that businesses facing bankruptcy may have little choice. In other circumstances, she argued, cutting staff can weaken a company's ability to recover.

'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,' she said. 'We've never had a layoff in Torani's 101-year history,' she added, arguing that a company's financial performance and investment in its workforce need not be competing priorities.

Torani Protected Jobs Even During the Pandemic

Torani moved its operations to San Leandro in 2020, aiming to retain 100% of its workforce. Dulbecco told Fortune that the company mapped employees' home ZIP codes to find a new location within a reasonable commuting distance. The decision proved to be a defining moment for the company.

The company faced mounting financial pressure after borrowing heavily to build its new factory just as the COVID-19 pandemic hit. Rather than lay off or furlough staff, the company cut marketing and advertising costs, paused business travel, and asked departments to review budgets and eliminate non-essential spending.

'With significant financial uncertainty and a major Flavor Factory investment underway, we asked ourselves: What decisions will make us proud when we come out on the other side? We committed to getting through the crisis together without layoffs or furloughs,' Dulbecco said.

As coffee shops and drink outlets closed, Torani expanded its online retail and grocery business to help compensate for lost sales. Torani's revenue fell 20% in April 2020 before recovering in May, Dulbecco said. She added that revenue rose 15% year over year for the full year. She said Torani could not have achieved the same results without keeping its workforce intact.

US Job Cuts Fall 39% in 2026 as Employers Adopt Wait-and-See Approach

Although US employers continued to announce job cuts in 2026, announced reductions fell during the first nine months compared with the same period in 2025, according to a September analysis by Challenger, Gray & Christmas. Employers announced 573,195 job cuts through September, down 39% from 946,426 a year earlier. These figures track announced job cuts, not necessarily completed job losses.

The employment consultancy said employers were taking a cautious approach amid economic uncertainty. 'Companies are in a wait-and-see period right now,' Andy Challenger, the firm's chief revenue officer, said in the report, citing high energy costs, uncertainty over the war in Iran, the prospect of higher interest rates, and rising healthcare expenses.

Torani Uses AI and Automation to Change How Work Gets Done

Automation has not led Torani to lay off workers, but it has reduced the need for new hires. CEO Dulbecco told Business Insider that automation allows the company to operate with fewer employees than it would otherwise need. Torani also uses AI to support market research, sales forecasting, and demand planning.

Dulbecco said the company aims to use technology to improve 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.

That approach reflects Torani's longer-term strategy. Dulbecco told Fortune that Torani had averaged approximately 20% annual revenue growth over 35 years and expected the company to generate more than $800 million in revenue in 2026.