Zappos has been known to be that exciting company with a fun yet efficient office. Its novel way of “anything goes” strategy was wildly unheard of during its onset. Because of this, it even caught the eye of business executives and other industry leaders for its style of management. In fact, a few years after the company was founded, it was acquired by Amazon for $1.2 billion. But the company has seen quite the journey since its start. And the rise and fall of Zappos CEO Tony Hsieh have been an interesting topic for many.
While on the outside, the man wanted to spread happiness into the world, he often struggled with alcohol and had personal demons he had to face.
How Tony Hsieh built Zappos
Before leading Zappos, Hsieh, who is of Taiwanese descent, founded the startup LinkExchange. During his time in Zappos, Hsieh made it his mission to liven up the company with quirks.
The company’s motto, “Create fun and a little weirdness,” represents his approach to leading his company. The company’s office in Nevada was filled with posters, streamers, stuffed animals, and other personal items of the team.
Hsieh often toured visitors to his zany office. Keeping it chill wearing casual jeans while twirling an umbrella in his hand.
His book, “Delivering Happiness: A Path to Profits, Passion, and Purpose” made him a familiar name for up-and-coming industry leaders. Because of this, from the CEO, Hsieh quickly became a happiness guru preaching work-life balance. Aside from his fun persona, though, Hsieh also had the technical skills that helped Zappos become a success story.
He went on to make innovations in Zappos. He started the holacracy method, which gave office members more freedom for self-regulation.
It took away standard senior management roles and tried to create a more initiative-based workspace. Meanwhile, in 2015, Hsieh sent his employees an email saying that the company would switch entirely to self-management.
This new system meant that roles and seniorities would be more flexible. However, staff said that it meant more meetings and other commitments to make the roles work. This would signal a turning point in the rise and fall of Zappos CEO Tony Hsieh.
Hsieh’s health problems
Despite the complaints, Zappos remained a trailblazer for making the workplace happy. Hsieh even invited the singer Jewel to bring his workers’ entertainment.
Beneath all this, though, close friends and other coworkers said that Hsieh was suffering from social anxiety and face blindness. His inability to recognize faces often meant that he had to use post-it notes and other reminders to keep people around him in check.
Hsieh’s conditions worsened during the pandemic. Closed off from people, Hsieh would go on to retire from his position. He was also losing a lot of weight while drinking a lot. During this time, he began to develop an odd fascination with fire, among other things.
He eventually succumbed to death while at a party in November 2020. The cause of death was ruled to be related to alcohol. Days after his death, an outpouring of support from the industry washed over the news.
The aftermath of Hsieh’s death
Today, Zappos’ CEO is Kedar Deshpande. While the company has continued its legacy as a fun-loving enterprise, the death of Hsieh has hit hard for many.
Friends of Hsieh note that while his quest to spread happiness was noble, he rarely took care of himself. The rise and fall of Zappos CEO Tony Hsieh prove that business success is not the end-all, be-all. In the end, all the fame and material wealth will not amount to much if you don’t pay enough attention to health.
