Zero Layoffs in 99 Years: Torani Redefines What It Means to be a “People-First Company” as it Surpasses $500 Million in Annual Revenue

The “Opportunity Company” Demonstrates How Prioritizing People Grows the Bottom Line For Long-Term Success

Global flavor company Torani released new internal data today showing an employee tenure rate 47% higher than the national average, proving that creating opportunities for team members—at a time when many companies are eliminating them—is the most effective way to drive engagement and long-term success. As the company looks ahead to its 100^th anniversary in 2025, it has surpassed the $500M revenue mark and maintained its record of never conducting a single layoff.

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Global flavor company Torani released new internal data today showing an employee tenure rate 47% higher than the national average, proving that creating opportunities for team members—at a time when many companies are eliminating them—is the most effective way to drive engagement and long-term success. (Photo: Business Wire)

In the U.S., layoffs and discharges spiked to nearly 1.8 million in July 2024, with 98,000 lost positions hitting the manufacturing industry alone—a 12% increase compared to the month prior—according to the Bureau of Labor and Statistics (BLS). Research shows companies that cut 10% of their workforce are at risk of increasing their voluntary turnover rate by 49%, as many employees feel they have to take on the responsibilities of those laid off without receiving a pay increase. Company morale is also jeopardized, dropping by more than two-thirds within the first year layoffs are enacted.

“Layoffs are a choice,” said Melanie Dulbecco, Torani’s CEO for the last 33 years. “We’ve made it through nearly a century of challenging times, including The Great Depression, The Great Recession, and the COVID-19 pandemic without a single layoff, ensuring our team members’ jobs are safe and secure. Protecting our team members like family also means protecting our bottom line—we firmly believe these go hand-in-hand.”

Torani’s commitment to being an opportunity-driven company has fueled impressive results, including:

• Surpassing $500 million in annual revenue this year and sustaining a 20% compound annual growth rate (CAGR) for the past 33 years.
• Achieving above 90% employee retention rate and maintaining a turnover rate below 7%.
• Having an average employee tenure of over 6 years, compared to the national average of 4.1 (Torani’s average figure is even more remarkable considering the company recently expanded its workforce by 24%).
• 21% of Torani’s workforce being at the company for over 10 years.
• Doubling in size every four years.

Beyond its steadfast commitment to avoiding layoffs, Torani also focuses on providing its team members with both opportunities for professional development and to build their economic potential, including creating sustainable income and long-term wealth for themselves and their families. Torani’s financial initiatives are rooted in its commitment to shared success, a practice rarely found in manufacturing. Every team member at Torani—regardless of experience level, role, or tenure—is eligible for annual financial bonuses, profit sharing, an Employee Stock Ownership Plan (ESOP), and 401(K) matching.

“Our ‘secret sauce’ isn't just exceptional flavor—it's our radical people-first philosophy and commitment to creating opportunity for our team members,” said Tai Doong, Torani’s president. “Torani’s motto of ‘grow baby, grow’ isn’t just about our business; it’s also about all our team members’ opportunities to learn, develop, and find new ways to expand our work experiences.”

Torani is committed to building innovative internal programs that help its team members continuously learn, develop, grow, and forge new career paths. “Career Mixology” encourages team members to build new skills that can lead to new roles across various departments. “Contribution Management” is a forward-looking take on traditional performance reviews, driven by team members’ self-assessments and aspirations, that prioritizes expanding employees’ opportunities in the present and future. Torani’s newest program, “Skill Blocks,” was created for the company’s hourly and frontline team members and lets them select specific skills they want to build and the pace they want, with each new skill resulting in incremental pay increases. “Skill Blocks” is designed to ensure team members have transferable skills and the ability to earn higher wages if they choose to leave the company.

As Torani sets its sights on doubling in size once again and reaching $1 billion in annual revenue by 2030, the company is committed to keeping its roots in the San Francisco Bay Area. As one of the only food and beverage manufacturing companies remaining in the region, Torani has no plans to slow down as it works to expand its San Leandro, CA headquarters to over 630,000 square feet and hire an additional two dozen team members by the end of the year, bringing its total to 400.

About Torani

Torani is deeply committed to being an amazing flavor company whose purpose is “flavor for all, opportunity for all.” Established in San Francisco’s North Beach neighborhood in 1925, we put Italian sodas on the U.S. map in the 1920s and created the world's first flavored latte in the 1980s. From the beginning, we’ve used only the best ingredients, like natural flavors and pure cane sugar, to craft flavors that are vibrant and delicious. Enjoyed in cafes, restaurants, and home kitchens for the last 99 years, Torani strives to inspire and lead flavor innovation globally while remaining a family-owned Bay Area business. In practice and life beyond the bottle, Torani is a certified B-Corp that believes businesses should create more opportunity, and we’re dedicated to helping all the people, partners, and communities we touch thrive. Learn more at torani.com.

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