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Amazon Subsidiary Zappos Lays Off Around 20% of Staff

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As per individuals associated with the job cuts as well as a Zappos memo obtained by The Wall Street Journal, Zappos fired more than 300 of its workers the previous month, representing approximately 20 percent of the firm’s workforce in Las Vegas.

The Zappos job cuts were part of a larger round of cutbacks at Amazon which are anticipated to impact over 18,000 staff members, according to the Wall Street Journal. Those who are also the latest in a string of shifts by Zappos’ lifelong parent corporation that, according to individuals associated with the companies, have largely crumbled Mr. Hsieh’s legacy.

Zappos
Image Source: inventiva.co.in

In the early 2000s, Mr. Hsieh led Zappos from its starting as just an online shoe business to its selling to Amazon in 2009 for 1.2 billion USD, & he remained in charge of it independently till his death at the age of 46 in November 2020. He has been well-known as a leading pioneer via his greatest book “Delivering Happiness,” in addition to being a famous and successful downtown Las Vegas developer.

Also Read: Dell to slash about 6,650 jobs in latest tech job cuts

As per individuals associated with the businesses, one of the massive modifications at Zappos is the departure of a longstanding Zappos executive and Mr. Hsieh’s right-hand man for many years Tyler Williams, who resigned from the firm during the latest round of layoffs.

In an email to employees in January, existing CEO Scott Schaefer named the layoffs “extremely difficult news,” echoing views expressed by many other tech titans following recent layoffs.

“As we enter 2023, we are still facing an uncertain economy which required us to continue to take a hard look at our business, and respond in a way that ensures we are set up for long-term success,” he wrote to employees.

Source: wsj.com

According to individuals associated with the industries, Mr. Hsieh was willing to sell the company to Amazon upon the condition that the firm will function independently, even though Amazon is much more engaged in Zappos as well as its management decisions than it was when Mr. Hsieh managed the company. Zappos is presently financially viable, even if it has yet to meet all of the growth set targets by Amazon, according to the company.

Also Read: Google has rolled out Immersive View for Maps across five cities

An Amazon spokeswoman said, “We’re proud of everything Zappos has accomplished since joining forces with Amazon in 2009, and we continue to support their ongoing commitment to delivering the best possible customer experience.”

Source: wsj.com

Tony Hsieh – Co-Founder of the Online Shoe and Clothing Company Zappos

Founder, start-up, Tech Story / By

For constant growth, one needs to take risks, from time to time. Getting into a new business, or changing a line of work, or anything that keeps your adrenaline rush at its peak as it will lead you to most fulfilling experiences. The success, of course, follows and, so does money. Entrepreneurs are known for their risk taking abilities and venturing into newer forays. Tony Hsieh, is one such figure, who has kept evolving his talent from time to time and has reached the topmost position in the corporate world.

Early Life

Tony Hsieh was born on 12 December 1973, in Illinois, US, to Richard and Judy Hsieh, who shifted from Taiwan to Illinois. He was brought up on the bay area of San Francisco with his two brothers, Andy Hsieh and Dave Hsieh.

He graduated in Computer Science from Harvard University, in 1995. While studying in Harvard, Tony managed the Quincy House Grille and, sold pizza to the students in his dorm. Here he met Alfred Lin, who was his best pizza customer and, a future colleague.

Career

Tony landed his first job with Oracle Corporation, soon after he graduated. But, just in half a year, he realized that the corporate environment was not meant for him and, left the job. Later he went on to set up LinkExchange – an advertising network – along with his college friend and ex-Oracle employee Sanjay Madan.

Tony Hsieh
Image Source: flickr.com

The central aim of LinkExchange was to advertise the sites of companies, interested in the company. Tony landed his first 30 clients, via e-mail and, just within three months, the site displayed ads of 20,000 web-pages. Members were allowed to advertise their site using banner ads on LinkExchange. The banner ads were displayed over 10 million times and, by 1998, the site registered 400,000 members and 5 million ad rotations daily. The company was sold to Microsoft for $265 million, in November 1998.

The next business Hsieh started was an incubator and investment firm, whose name was originated as a result of a dare. One of Tony’s friends said that she would invest everything, she has got, if they named the company ‘Venture Frogs’ and, thus, accepting the challenge, the company with the same name was born. Venture Frogs invested in several companies, like AskJeeves, OpenTable, and Zappos. The company did not witness huge profits but, led Tony to take interest in Zappos.

Founding Zappos

Nick Swinmurn, the person with the original idea of Zappos, approached Tony, in 1999, with the idea of selling shoes online. Hsieh wasn’t interested in the early days but, when Swinmurn mentioned that footwear business accounted to $40 billion in the US alone, of which 5% was sold by paper mail orders.

The figures struck Tony, and through Venture Frogs, he decided to invest in the business. He accepted the position of CEO of Zappos, investing $2 million, and in 1999 started ShoeSite.com. Tony enjoyed working in Zappos and set up an office in Venture Frogs premises itself. In 2000, the company received additional funding and generated about $1.6 million in revenue, and $8.6 million, in the next year.

In 2004, Sequoia Capital invested $35 million in Zappos as they saw the company made sales worth $184 million. In 2007, the company made sales worth $840 million and had expanded their products, in every sector, like kids, men’s, women shoes, etc. By this time, they had a dedicated headquarters situated in Henderson, Nevada.

The year 2009, was the most blooming for Zappos, as the company touched $1 billion in revenue. On July 22, 2009, Amazon acquired Zappos, for a whopping $1.2 billion, and Hsieh made about $214 million through this deal.

Later, Hsieh also joined JetSuite’s board in 2011 and closed a $7 million investment deal for the ‘very light’ jet project.

Personal Life

Tony Hsieh, apart from business, believes in sharing knowledge. Therefore, he wrote Delivering Happiness, which became an international bestseller. In the book, he explains the details of Zappos’ journey and achieving the feat of $1 billion, in less than a year. The book remained on top lists for 27 consecutive weeks.

Tony isn’t married and likes to party. He does not stay with his parents as they wanted him to be a doctor or a lawyer. Hsieh received Ernst & Young Entrepreneur of the Year Award in 2007. He lives in Downtown Las Vegas, Nevada, and also has a home in Southern Highlands.