210 employees leave Zappos over ‘no managers’ policy

With reports of 14 percent of the company’s employees choosing to leave spreading, the online retailer is offering an explanation.

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Last year, Zappos turned over its company structure to a Holacrazy, which means the vast majority of employees do not have a manager.

How’s that working out for them, you may be wondering.

In March, the company’s CEO, Tony Hsieh, offered an out to employees who weren’t enjoying the new company culture. They had until April 30 to decide whether they would stay under the new regimeless regime, or they could bolt and take three months’ pay as severance.

In a Holacracy, traditional job titles are eschewed in favor of doling out a changing roster of roles to employees.

Business Insider described the approach last year:

Rather than being accountable to a single boss in a traditional hierarchy, each employee reports to the other people in their “circles.” Each circle has an organizational goal to achieve, and each role that people fill within the circle is a task necessary for accomplishing that goal.

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