Torani CEO Says Layoffs Are a Choice as Syrup Brand Grows and Automates
Growth and opportunity
Dulbecco says her early experience seeing her mother struggle and noticing unequal opportunities shaped her goal of building what she calls an opportunity company. After trying politics and nonprofit work, she moved into business and joined Torani after meeting its family owners.
When she started, Torani had annual revenue of $700,000. Dulbecco says revenue has grown by an average of 20% a year, and the company plans to exceed $800 million this year.
Why she opposes layoffs
Dulbecco says layoffs are a choice for companies that are not facing bankruptcy. In her view, cutting staff as a financial exercise can undermine resilience and the ability to regain momentum, which she says depends on a team.
She acknowledges that bankruptcy can force extremely difficult decisions. Otherwise, she argues, companies should consider how their choices affect employees and long-term performance.
Automation and AI at Torani
Torani is hiring fewer people than it would without automation, Dulbecco says. The company uses automation to reduce manual, repetitive jobs with limited career mobility, and AI for consumer and market research, sales forecasting, and demand planning. Dulbecco says employees trust the company to automate while also elevating work, and to protect opportunities and support everyone's success.
Choosing to stay together
Torani borrowed heavily to build a new flavor factory, and its loans were due to begin coming due in April. The executive team reviewed what the company needed to do to remain financially sound, then discussed what would make them proud afterward.
They decided to get through the challenge as one team, without layoffs or furloughs. During the pandemic's early months, Torani prepared for sales to fall 50%; sales declined 20% in April 2020, then revenue recovered in May.
The company shifted toward online retail and grocery as cafés and drink shops closed. Torani ended 2020 with revenue up 15% year over year.
Key points
- Dulbecco says Torani considers layoffs a choice except when bankruptcy makes difficult cuts necessary.
- Torani's annual revenue grew from $700,000 to a planned level above $800 million this year.
- The company uses automation and AI while saying it intends to preserve employee opportunities.
- Torani avoided layoffs and furloughs during a period of factory-related debt and pandemic disruption.