Zappos CEO Tony Hsieh to Employees: Embrace Self-Management or Leave By the End of the Month

By Richard Feloni

Online shoe-seller Zappos has been experimenting with a self-management organizational structure known as Holacracy for nearly two years.

But on April 30 the company plans to be fully manager-free, according to a company-wide memo CEO Tony Hsieh emailed late last month.

"Having one foot in one world while having the other foot in the other world has slowed down our transformation towards self-management and self-organization," he wrote.

Employees who don't like the new structure will be offered severance packages if they resign by April 30. However, to get their severance they must either read the management book "Reinventing Organizations" or just email a statement that they are not reading it.