Earlier this year Tony Hsieh, the CEO of Zappos informed the company's employees that they had until April 30th to decide whether they want to stay in a company that is shedding the traditional hierarchy, abolishing titles and eliminating bosses. Tony Hsieh is a firm believer in holacracy, a daring view on how modern organizations should operate. Now, after the deadline has passed, 210 employees (out of 1,500) decided to choose the severance package and leave. The move to offer the option to leave was meant to accelerate the transition into the new organizational model.
14% of workforce is a significant chunk of people to loose. What is especially intriguing is that those people decided to leave before the company officially eliminated managers on April 30th. It will be interesting to see how the situation unfolds as employees start to work under the new regime.
What is holacracy? Watch the video