Tony Hsieh's Email to Employees RE: Zappos' Sale to Amazon

http://blogs.zappos.com/ceoletter

by dwynings • 17 years ago

221 32 17 years ago

blogs.zappos.com

olefoo• 17 years ago

That is an excellent example of how to communicate like a person when you're speaking for a company. For the sake of Zappos' employees let's hope they manage to uphold not just the explicit promises made in this letter, but the implicit one of connection and caring that are carried by the tone.

The real measure of a letter like this is how it reads six months from now.

wheels• 17 years ago

Really? This sounds like a person? Honestly, it reads like The Letter Every CEO Of An Acquired Company Must Write.

[x] "Nothing will change!" [until we get around to changing it]

[x] "Your jobs are safe" [see point one]

[x] "It's about synergy, not money" (extra credit for using the phrase "high touch")

ErrantX• 17 years ago

[x] requisite light hearted "we are a different kind of company" tone

(agreed)

sethg• 17 years ago

[x] [related to point one] "They love us just the way we are" [until we stop raking in profits for them]

wglb• 17 years ago

Very excellent communication to employees, and precise, as well: "Your job is just as secure as it was a month ago."

dhimes• 17 years ago

Not said: "Of course, we have been in negotiations for many months, and your job was the first one we decided to eliminate."

joez• 17 years ago

"3) We want to align ourselves with a shareholder and partner that thinks really long term (like we do at Zappos), as well as do what’s in the best interest of our existing shareholders and investors."

I read that as there was pressure from a shareholder for the short term. Some board member was pushing for an exit.

mediaman• 17 years ago

My understanding is that this was the case. I've seen some articles indicating that Zappos has struggled to meet the short-term financial goals of some of the investors, while staying aligned to its long-term objectives. So somebody was wanting to distribute their capital gains to their LPs.

ghshephard• 17 years ago

You have to respect a company that doesn't try and squash communication, but instead releases a letter to its employees to the public blog like this.

hwijaya2• 17 years ago

Reading this email or the one by Autodesk's founder (http://www.fourmilab.ch/autofile/www/chapter2_22.html) sometimes leave me with questions on why most people can't take this more "like-a-person" approach in communication.

Most letters from top management that i know of are usually boring and i rarely understand the whole information (usually i ditched it far before i can get through the whole formal languages)

imajes2• 17 years ago

they're normally written by lawyers and advisors. To partially answer your question - you should check out the SEC guidance on this kind of thing - it's not easy telling people you're about to engage in a massive deal that impacts lots and lots of people with lots and lots of money.

hwijaya2• 17 years ago

Sure. I can understand that. I am no expert in legal system, but, is it illegal to send out something that is legally correct AND/OR maybe accompany by another letter that practically is more human-readable?

After all, what's the point of the letter if no one is reading it?

jakarta• 17 years ago

I think though that in general, Tony at Zappos cultivates a pretty open image about him and the company. Anything you read from them is really light on the legalese with clear thoughts. There are a few other notable CEOs that take this approach, but most do not.

edawerd• 17 years ago

I loved the video from Jeff Bezos explaining Amazon's beginning:

"It was a great moment when we would examine every order coming into Amazon. And it was always a family member placing the order. And the first order we got from a stranger, I remember, there was probabaly 10 of us in the company. We were all gathered around after the bell rang, looking at the order. And we were like 'Is that your mom?', 'Thats not my mom!'. And thus, it began."

Can totally relate to this feeling.

mhartl• 17 years ago

I remember people being disappointed about Bezos's talk last year at Startup School; it felt less like a personal startup story and more like an advertisement for Amazon Web Services. If he'd given a talk more like the one in the video, I doubt anyone would have been complaining.

staunch• 17 years ago

He taught everyone something really important: If you're in a big room full of perfect potential customers make sure you tell them to buy your product!

brown9-2• 17 years ago

I never realized how much of a geek Bezos is until watching this video.

Really awesome to see!

_g8fe• 17 years ago

http://www.youtube.com/watch?v=-hxX_Q5CnaA The link to the video.

leftnode• 17 years ago

Same here! My business partner and I recently launched an e-commerce site selling gun supplies and accessories. We're doing very well, but still text message each other when we get a new order. Still get that same thrill from the first order!

I_got_fifty• 17 years ago

At the risk of sounding ignorant, what is zappos? I've never heard of them.

gabrielroth• 17 years ago

Let Me Google Is Your Friend That For You.

jasonkester• 17 years ago

I'm curious as to why the parent is being downvoted. He asked an honest question that raises a valid point: Who are these guys, and if [he's] never heard of them, why is this news?

As far as I can tell, they're an online shoe store that focuses on customer service. I've never personally used them or been to their site, but I hear the occasional good story about them.

ekanes• 17 years ago

I think the parent was downvoted for asking people to explain it to him, versus typing "Zappos" into Google, and then clicking "Search".

skorgu• 17 years ago

Q: Will we get a discount at Amazon?

No, because we are planning on continuing to run Zappos as a separate company with our own culture and core values. And we're not going to be giving the Zappos discount to Amazon employees either, unless they bake us cookies and deliver them in person.

By all accounts a fascinating culture. I wish them well!

seshagiric• 17 years ago

I like the very last question.

eterno• 17 years ago

Almost a downer, I didnt think that tony was the kind of CEO who would sell out.

Somebody tell me it was the VC's.

theoneill• 17 years ago

Somebody tell me it was the VCs

Happy to oblige:

http://news.ycombinator.com/item?id=719049

supahfly_remix• 17 years ago

The reality often is that acquisitions are good for the founders who cash out after their holding period expires, but aren't good for the employees who are left holding the bag.

sokoloff• 17 years ago

How are employees left holding the bag here exactly?

Employees with shares, options or RSUs of Zappos private stock now have the same on a publicly traded stock. There may be a holding period for them as well, but every time that I've been an employee at a company that's gone public or been bought by a public company (1 of the first and 2 of the second), the only bags I've been left holding were full of $$.

briancooley• 17 years ago

I think the handwritten points on the flipchart are an excellent touch by Bezos and likely resonated with the Zappos employees. Even better if it was organic rather than by design.

For those that missed the video, Bezos's points: - Obsess over customers - Invent - Think long term - It's always Day 1

Tony Hsieh's Email to Employees RE: Zappos' Sale to Amazon

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