As artificial intelligence reshapes workplaces and raises concerns about job losses, a 101-year-old US company is taking a different approach. Torani, a San Leandro, California-based syrup maker, has made a point of never laying off an employee in its history.
The company has maintained its no-layoff policy through the Great Depression, the 2008 financial crisis, the automation of American manufacturing, and the COVID-19 pandemic, during which cafes and restaurants that relied on its products were forced to shut.
Now, generative and agentic AI are changing entry-level jobs across corporate America. For Torani CEO Melanie Dulbecco, the challenge is to adopt the technology without abandoning the company's long-standing approach to employees.
“It is going to change things dramatically, and we’re all going to live through this together, but our approach is going to be the same as it has been,” Dulbecco told Fortune. “How do we create great jobs through this for everyone?”
Dulbecco joined Torani in 1991 after being introduced to the family owners by a friend. At the time, the company had nine employees and annual revenue of $700,000.
Torani traces its roots to 1925, when its founders began selling handcrafted drink syrups in San Francisco. After Prohibition ended in 1933, the company moved into the liqueur business. Its coffee syrups, which became its signature products, arrived in 1982.
The company has since grown from five syrup flavors to more than 150. Dulbecco has also said Torani helped create the flavored-latte category with its early vanilla syrup.
This year, Torani is on track to generate more than $800 million in revenue with 500 employees, while recording 20% annual revenue growth across 35 years, according to Dulbecco.
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Dulbecco said Torani considers its employees before focusing on potential savings from new technology. Instead of asking how many positions AI could eliminate, she asks what employees can do to create more value.
Torani's no-layoff record has also helped build trust around new technology. Employees, she said, are more willing to experiment with AI because they know the company will support them.
“What are those 500 people, or 200 people, or 20 people doing to add more value?” Dulbecco said.
She added that Torani has not faced the same hiring challenges reported by many employers, as it values people in every role.