Nearly 14% Of Zappos Staff Left After Company Implemented New Management System With No Bosses

Earlier this year, online shoe retailer Zappos unveiled a new management system that banished managers and job titles. While some employees might embrace a culture without a boss, more than 200 Zappos staffers decided to take a severance deal rather than continue working under the new boss-free model.

The Washington Post reports that 210 employees – about 14% of the company’s 1,500-person staff – took CEO Tony Hsieh up on his offer to quit with three months severance if they decided they didn’t like the new system.

The employees had until April 30 to make their decision, a deadline that was implemented to help speedup the adoption of no boss system.

While the company confirmed the exits, it declined to provide information on which employees took the offer, whether they were sales reps or previous managers and executives.

An employee who helped the company implement the new system says that employees chose to leave for a variety or reason.

“Some Zapponians took it because they are not in line with the vision of the company, others took it to pursue other passions including starting businesses,” he tells the Post. “Ultimately, however many people took the offer is the right number because they are doing what is best for them and for Zappos.”

Zappos new management system is part of a new concept called Holacracy, in which traditional corporate rankings are ousted in favor of self-governed teams, the Post reports.

In a memo when the program was first announced, CEO Hsieh said the goal was to make the company “a fully self-organized, self-managed organization by combining a variety of different tools and processes.”

The offer was similar to a previous deal the company provides to new employees, in which they can decide they aren’t a good match for the company and receive $2,000 to quit.

At Zappos, 210 employees decide to leave rather than work with ‘no bosses’ [The Washington Post]