Zappos, a popular online shoe and clothing shop, is offering severance packages to staff who aren’t fully committed to its new management structure, ‘Holacracy’. This radical system, which eliminates traditional job titles and managers, is intended to create a more democratic workplace. However, it has been met with mixed reactions from employees. To ensure everyone is on board, Zappos’ CEO, Tony Hsieh, has given staff until 30 April to decide whether they want to work under this new system or take a severance package and leave.

The offer is part of a wider move to fully implement Holacracy across the company. The system, which is already in place in part of the company, is designed to distribute authority across a clear structure of overlapping teams, rather than being concentrated at the top. This is expected to lead to greater efficiency and innovation.

The severance package on offer to employees who choose to leave is at least three months’ pay. This move follows a similar offer made by Hsieh in 2014 when he first introduced the concept of Holacracy. At that time, 14% of the company’s staff decided to take the offer and leave, suggesting that this radical management shift is not for everyone.

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