• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
LeadershipZappos

Here’s What Happened When Zappos Tried To Abolish Bosses

By
Martha C. White
Martha C. White
and
Money
Money
Down Arrow Button Icon
By
Martha C. White
Martha C. White
and
Money
Money
Down Arrow Button Icon
January 25, 2016, 10:56 AM ET
Clinton Global Initiative 2014 Denver
DENVER, CO. - JUNE 25: Tony Hsieh, chief executive officer, speaks at the closing plenary session of the Clinton Global Initiative America at the Sheridan Downtown Denver, Wednesday morning, June 25, 2014. (Photo By Andy Cross / The Denver Post)Photograph by Andy Cross — Denver Post via Getty Images

Who hasn’t dreamed about a job where you come in and do your work with nobody breathing down your neck or making demands? Sounds pretty much like the ideal gig—except that in practice, it’s not always so easy to sweep away the hierarchy that has defined work for, oh, centuries (give or take).

That’s what the folks at Zappos.com found out when they engaged in an ambitious experiment to yank down the corporate ladder at the Amazon-owned retail site. Dubbed “holacracy” and championed by CEO Tony Hsieh, the idea was that layers of management were stifling innovation. It’s pretty much the golden rule of online retailing, but applied in a workplace context: Get rid of the middlemen for better results.

“A lot of people in the organization, including myself, felt like there were more and more layers of bureaucracy,” Hsieh told the New York Times in an article about the experiment, which started in 2013 and was in full swing a couple of years later. (Even breaking the mold, it seems, takes time.)

As described in the article, the company was grappling with some thorny problems. For starters, without a hierarchy, how do you set pay? With no titles and no promotions, on what grounds can you ask for a raise? Without formal systems for recognition and rewards, some employees became reluctant to take on extra work.

And while you might think you’d be more productive if you didn’t have to answer emails and send constant updates to your boss about the status of projects, consider this: The idea behind holacracy isn’t so much that you’re not accountable to anybody—it’s that you’re accountable to everybody.

So that means meetings. Lots of meetings. The Times chronicled workdays filled with roundtable gatherings that were full of engaging communication but left some workers feeling overwhelmed and squeezed for time to get their actual jobs done.

Last week, in a follow-up to its initial article, the Times looked at Zappos again to see how it was working through the new manager-free paradigm. It’s becoming increasingly clear that holacracy isn’t for everyone. Over the course of roughly the past 10 months, nearly 20% of Zappos’ employees have left the company. In some work groups, such as one crucial team engaged on a big tech infrastructure migration, nearly 40% had quit.

That doesn’t mean that there aren’t other employees who think not having a supervisor in the traditional sense automatically makes their gig a dream job. But Zappos declined to address the issue with the Times in its follow-up article, which characterized the loss of talent as “another blow” to the radical idea of a boss-less workplace.

This article was originally published on Money.com.

About the Authors
By Martha C. White
See full bioRight Arrow Button Icon
By Money
See full bioRight Arrow Button Icon

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Leadership

Macquarie bets impact investing can fill an Asian financial access gap for the ‘missing middle’
AsiaAustralia
Macquarie bets impact investing can fill an Asian financial access gap for the ‘missing middle’
By Nicholas GordonApril 1, 2026
32 minutes ago
jamie dimon
Workplace Culturereturn to office
Jamie Dimon, office-work champion, vows his anti-remote culture ‘would crush you.’ The economy’s top talent in begs to differ
By Jake AngeloApril 1, 2026
3 hours ago
Ayesha and Stephen Curry
C-Suitephilanthropy
Warren Buffett revives his legendary charity lunch auction—this time with Stephen Curry. His last one raised $19 million
By Jacqueline MunisApril 1, 2026
4 hours ago
How AI will make your Shake Shack order even faster
NewslettersCIO Intelligence
How AI will make your Shake Shack order even faster
By John KellApril 1, 2026
5 hours ago
Chief human resource officer salaries have surged 30% at S&P 500 companies. Here’s why boards are opening the checkbook
C-SuiteHuman resources
Chief human resource officer salaries have surged 30% at S&P 500 companies. Here’s why boards are opening the checkbook
By Courtney Vinopal and HR BrewApril 1, 2026
5 hours ago
Nvidia CEO Jensen Huang
SuccessJobs
Nvidia CEO Jensen Huang’s advice to workers scared of AI: You’re just confusing your job with the tools you use to do it
By Emma BurleighApril 1, 2026
6 hours ago

Most Popular

Jerome Powell says the $39 trillion national debt is ‘not unsustainable,’ but warns the trajectory ‘will not end well’
Economy
Jerome Powell says the $39 trillion national debt is ‘not unsustainable,’ but warns the trajectory ‘will not end well’
By Fortune EditorsMarch 30, 2026
2 days ago
Two-thirds of parents say their adult Gen Z kids still rely on them financially  for support—even though it's putting them under strain
Success
Two-thirds of parents say their adult Gen Z kids still rely on them financially  for support—even though it's putting them under strain
By Fortune EditorsMarch 31, 2026
1 day ago
Kevin O'Leary says if you earn $68,000 a year and follow this rule, you'll retire a millionaire
Personal Finance
Kevin O'Leary says if you earn $68,000 a year and follow this rule, you'll retire a millionaire
By Fortune EditorsMarch 31, 2026
1 day ago
A man used AI to call 3,000 Irish bartenders to track the cost of Guinness. Now pubs are lowering their prices to compete
AI
A man used AI to call 3,000 Irish bartenders to track the cost of Guinness. Now pubs are lowering their prices to compete
By Fortune EditorsMarch 30, 2026
2 days ago
Hiring just hit a level not seen since the economy was ‘closed down literally’ during COVID, top economist says
Economy
Hiring just hit a level not seen since the economy was ‘closed down literally’ during COVID, top economist says
By Fortune EditorsMarch 31, 2026
1 day ago
Markets cheer as Trump threatens to abandon Iran war, but Jamie Dimon sides with allies: ‘Win this thing and clean up the straits’
Energy
Markets cheer as Trump threatens to abandon Iran war, but Jamie Dimon sides with allies: ‘Win this thing and clean up the straits’
By Fortune EditorsMarch 31, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.