More than 200 employees have accepted buyouts from Zappos after the company announced its switch over to a new management system.
In a statement to the Las Vegas Sun, Zappos spokeperson Catherine Cook said that 14 percent of its staff, or 210 out of 1,503 employees, have taken buyouts.
On March 26, Quartz obtained an internal memo from Zappos CEO Tony Hsieh to employees, which stated that Zappos would begin more aggressively pursuing self-organization. In 2013, the company implemented Holacracy, a system that eliminates traditional managerial hierarchies in favor of a self-organizational system. The company believes this will increase productivity, innovation and empowerment.
In his memo, which was later released on the company’s blog, Hsieh said the Zappos needs to push beyond partially operating under both Holacracy and legacy management hierarchy.
“Having one foot in one world while having the other foot in the other world has slowed down our transformation towards self-management and self-organization,” he said.
Hsieh said that as of April 30, he would begin to eliminate the legacy management hierarchy, “There will be effectively be no more people managers.”
He will also take apart legacy silo’ed structures of merchandising finance, tech, marketing, and other functions to create self-organizing business-centric circles.