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Zappos Loses More Employees in Wake of Management Restructuring

Zappos’ experiment with Holacracy continues to show negative results. The company released a statement declaring that about 50 employees have taken a second buyout offered by the company, following CEO Tony Hsieh’s strategy for self-organization announced in March 2015.

This second set of buyouts was reserved for tech employees working on a project Zappos calls Super Cloud, a migration to Amazon’s technical infrastructure.

The 50 employees who took the offer represent 38 percent of people given the offer and brings the total number of people who have accepted a buyout from the company to 260. Since the new management system was implemented, a total of 18% of the company has chosen to leave.

Arun Rajan, Zappos COO, said, “While we have lost a number of folks, it is important to note that we have a significant group of highly talented individuals who will be staying to help move Zappos forward.”

The company had planned to complete Super Cloud in 2015, but the project has now been moved into Q1 of 2016.