Hsieh Family Cleans House at Downtown Project, Fires “Everyone”
A major shake-up is underway at Downtown Project (DTP), the downtown Las Vegas revitalization initiative founded by late Zappos CEO Tony Hsieh.
A source says the Hsieh family has cleaned house at Downtown Project, now known as DTP Companies, firing “everyone.” We’re never not calling it Downtown Project, just like Twitter will always be Twitter.
We’re told Michael Downs, Chief Operating Officer of DTP Companies, and Mark Carlson, Vice President of operations, have been fired, among others.
The extent of the layoffs hasn’t been independently confirmed. We’ve reached out for additional details. No joke, we’ve been told there’s no one to ask because everyone at DTP has been let go.
It’s clear the Hsieh family has made the decision to dramatically change the direction of one of downtown’s most influential real estate and hospitality organizations.
Downtown Project was launched in 2012 by Tony Hsieh, the entrepreneur who turned Zappos into an online retail powerhouse before selling the company to Amazon.
Hsieh committed $350 million of his personal fortune to transforming downtown Las Vegas. The dream was to create a community of entrepreneurs, artists, restaurants, bars and tech startups.
His DTP helped transform Fremont East and surrounding neighborhoods, acquiring dozens of properties and investing in businesses, residential developments and entertainment venues.
Downtown Project rebranded as DTP Companies in 2018.
Hsieh died in November 2020 at age 46 following injuries sustained in a house fire in Connecticut.
His death left a complicated financial mishigas (his supposed will is still being contested in court) and a metric ass-ton of downtown real estate holdings.
Hsieh’s father, Richard, and brother, Andrew, were appointed co-special administrators of his estate on Dec. 3, 2020. Andrew subsequently resigned from that role in 2022.
We’ve heard some wild stories about how Tony Hsieh’s estate has been administered. Basically, it’s an ongoing cluster. Despite announcing plans to sell nearly 100 of Hsieh’s downtown properties in 2021, the family has unloaded just a handful. Literally about a dozen. Recent sales have included Gold Spike and the Downtowner hotel.
The reported purge raises significant questions about the future of DTP Companies and the family’s plans for its remaining downtown assets.
This isn’t the first time DTP has experienced mass layoffs. In 2014, the organization eliminated 30 positions amid concerns about spending and financial sustainability.
For an organization founded on connectedness, collaboration and community, getting rid of everyone at DTP is a crazy twist in the evolution of downtown Las Vegas, and further dismantles Tony Hsieh’s legacy.
More as we hear it, as always.
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