210 Zappos employees quit over new Holocratic management system

More than 200 employees have opted to leave Zappos (NASDAQ:AMZN) rather than ride out the transition into total Holacracy, a management style that resists the top-down approach and focuses instead on self-management and self-organization.

In a company-wide memo issued by CEO Tony Hsieh earlier this week and obtained by Fast Company, employees leaving the company in light of the new move were offered a three-month severance package that includes temporary reimbursement of benefits.

"As previously stated, self-management and self-organization is not for everyone, and not everyone will necessarily want to move forward in the direction of the Best Customers Strategy and the strategy statements that were recently rolled out," Hsieh wrote in the memo.

About 14 percent of the company, 210 employees out of 1,503, decided they did not want to continue at a retailer where each employee is expected to be his or her own leader, reported CNBC. Hsieh is offering those leaving a buyout offer.

Zappos was acquired by Amazon in 2009. The company was one of many to launch a holiday pop-up shop last year in downtown Las Vegas where shoppers were given access to a physical space to browse, try on and order products from Zappos.com. It was the retailer's first foray into the physical store platform. 


For more:
-See this CNBC article

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