Dive Brief:
-
Some 14% of zappos.com’s workforce has taken the company up on the generous severance package it offered to employees ahead of a company-wide implementation of a new hierarchy structure.
-
The retailer had offered at least three months of severance to employees choosing to leave before April 30.
-
The offer came as the company transitions to its unique management structure, which it calls “holacracy,” a system of teams without hierarchy, bosses, or job titles.
Dive Insight:
The transition to Zappos “holacracy” hasn’t been smooth, but the people at Zappos seem unfazed. Tony Hsieh, Zappos CEO and one of the few at the firm who do hold a spot on a hierarchy, has said he only wants employees working there who are genuinely excited about the company and open to its new structure. The Zappos approach is a genuinely different management model that could eventually influence corporate structures in retail, one way or the other. For now, it’s more of an experiment.
“Whatever the number of people who took the offer was the right number as they made the decision that was right for them and right for Zappos,” said John Bunch, the Zappos employee heading the transition to holacracy.