The Zappos Exodus Continues After Radical Management Experiment

Zappos, the online shoe retailer experimenting with the radical self-management system Holacracy, is continuing to hemorrhage employees. In a post on the company’s website, Arun Rajan, the chief operating officer, said 18 percent of the company, or some 260 people, had left the company since March. The exodus began after the chief executive, Tony Hsieh, announced that the company was going to adopt Holacracy, which is supposed to promote collaboration and abolish hierarchy. Anyone who did not accept the change could take a generous buyout, Mr. Hsieh said at the time. Within weeks, about 14 percent of the company, or 210 employees, had left.