Comments on: Zappos Layoffs

By: Anonymous

Anonymous — Sun, 21 Dec 2008 23:22:41 +0000

Zappos has very very high turnover so it is unlikely that there exists 10% of that company who were problem employees. They fire the ones they do not like anyway based on the numbers of ex-Zappos employees on Facebook/Linkedin, whatever. Also, you can be sure their legal department made them sign something that will not allow them to speak about the company at all in order to get their desperately needed severance. So no employee who has a negative opinion is going to twitter about it.

Think Steve Jobs here. Control your PR, media and image to control your brand. Create a cult of personality around your CEO so that no one asks too many questions.

So how about these questions:

1. After YEARS of hinting at going public, they are no where near doing so and there has never been a whiff of anyone buying them out.

2. What in the wide, wide world of GAAP accounting is Gross Merchandise Sales?? Transparency means “what were your top line revenues (using GAAP)?” Not some inflated number that doesn’t acknowledge the huge return rate in their industry (and for which they pay for anyway via free shipping they encourage).

Yes, invest in your employees!!! They are your biggest expense but your biggest asset. Clearly based on you guys who have been there you see that in practice and there is surely a glimmer of humanity in these guys that you can not see elsewhere.

BUT that does not mean the layoffs aren’t indicative of a larger problem there with capacity planning, business model, etc. At the end of the day they will need to make a profit. It makes you wonder.

-Exiting Oversized Soapbox Now

By: babaluaye

babaluaye — Fri, 05 Dec 2008 07:35:38 +0000

oh please! if the company REALLY was concerned about their “family” they would have cut everybodys pay by 10% to keep its employees and not burn the 130+ brothers and sisters! wake up you naive fools, no company really cares about their employees, its the USA!! money is king! and for tony , its just a hobby to stroke his geeky ego, and his dorky friends that work there as well!!!

By: Phil

Phil — Fri, 21 Nov 2008 23:27:08 +0000

@Marie: Really?? You’re hoping that someone gets laid off because you don’t have a positive personal opinion of him? I really hope karma catches up with you.

@Joseph: Sequoia has been calling on all companies under their umbrella to cut costs. Considering that…at least from what I heard…many of their employees laid off were ‘problem’ employees anyways, it seemed like a purge of unnecessary/unreliable personnel than a blanket lay-off.

By: Joseph

Joseph — Wed, 12 Nov 2008 21:52:58 +0000

It’s widely reported/suspected that Zappos layoffs were forced by their outside investors, namely Sequoia Capital. Here’s a list of companies they have invested in:

http://www.crunchbase.com/financial-organization/sequoia-capital

Quite a few have experienced layoffs of at least ~10% of their workforce in recent weeks.

By: Authentic Responses to Recession? Try Alternatives to Layoffs — Authentic Organizations

Mon, 10 Nov 2008 23:08:00 +0000

[...] for valuing employees, layoffs may be inevitable…and may even be the right choice. (Maybe Zappo’s becomes a good example of authentic [...]

By: ahy

ahy — Sat, 08 Nov 2008 01:19:49 +0000

I recently (ish) started work for a company who believes in “fun”. I have to say I’ve never been as productive or learned so much in my life. I’m just hoping that they don’t sacrifice their culture for a few extra pennies on some budget line (which they would instantly lose in goodwill and productivity on some less easily measured line. Dumb, and I really hope they don’t, but so many companies do.) So far so good though. It’s still great, and I’m still finding myself shaking my head in disbelief on a daily basis at how fabulous it is to be treated in such a civilised manner.

I wish Zappos and their employees the very best of luck.

By: Laurie

Laurie — Fri, 07 Nov 2008 22:52:55 +0000

No, I’m sure he’s not a dickhead. I’m sure he’s a nice guy. I think I met him.

By: Marie

Marie — Fri, 07 Nov 2008 22:40:55 +0000

Lay off [redacted] from the Order Verification department he is the biggest dick head!

By: Laurie

Laurie — Fri, 07 Nov 2008 17:20:28 +0000

@Breanne I think you’re right that culture is the key to the company’s health. This layoff will have a temporary impact to that wonderful sense of “fun” but I hope it’s not permanent.

@Tracy As always, well said.

By: Tracy Tran

Tracy Tran — Fri, 07 Nov 2008 05:43:51 +0000

To add to Breanne’s point, somebody told me a quote of what you can tell if it’s a successful business, “If they make a proactive approach, even if it’s not popular among employees, their business will be successful down the line. If you react, it’s too late for your company.”

At least it’s a close group and a support system that these laid-off employees will get jobs sooner than later.