Torani layoffs are not the company's approach, CEO Melanie Dulbecco says, adding that the flavored syrup maker has never laid off workers in its 101-year history. She says businesses can often reduce other expenses instead of cutting jobs, though she acknowledges that companies facing bankruptcy may have limited options.

Key Takeaways

  • Torani cut marketing and travel spending rather than lay off or furlough workers during the pandemic.
  • Revenue fell 20% in April 2020 but increased 15% for the full year, Dulbecco said.
  • The company uses automation and AI in its operations, reducing the need for additional hiring.

How Torani layoffs were avoided in 2020

Torani faced pressure in 2020 after borrowing heavily to build a California manufacturing facility. Pandemic closures at coffee shops and other drink outlets disrupted demand as the company managed its transition to the new factory.

Instead of laying off or furloughing employees, Torani reduced marketing and advertising expenses, paused business travel and asked departments to review nonessential spending. It also expanded online retail and grocery sales to help compensate for lost business from drink outlets.

Dulbecco said revenue recovered in May after falling 20% in April. Full-year revenue rose 15% year on year.

Relocation and automation

Before moving operations to San Leandro in 2020, Torani mapped employees' home ZIP codes to find a location within a reasonable commute. The company aimed to retain its entire workforce during the move and said it hired 40 additional team members that year.

Torani also uses AI for market research, sales forecasting and demand planning. Dulbecco said automation lets the company operate with fewer employees than it would otherwise need, reducing the need for additional hiring while preserving career opportunities.

In September 2026, Dulbecco said Torani had averaged approximately 20% annual revenue growth over 35 years and expected revenue to exceed $800 million in 2026. That revenue figure was an expectation, not a reported result.

Microsoft's voluntary exit offer

Dulbecco's comments come as Microsoft offers voluntary exits to around 60,000 eligible employees in selected teams across the United States, India, the United Kingdom and Canada. Participating divisions include AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices; some teams are excluded.

Eligible employees have until early December 2026 to decide whether to accept the package, with departures expected at the end of the year. The offer follows an earlier voluntary retirement program in 2026 and Microsoft's announcement of around 4,800 job cuts in July as part of changes to its Xbox business.

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