Uber CEO to take indefinite leave of absence
- Author: Zachary Reyes Jun 23, 2017,
Jun 23, 2017, 18:52
He also says he is responsible for the company's current situation and needs to become a better leader.
This past Sunday, Uber's board of directors voted to endorse all of the 47 recommendations put forth by former USA attorney general Eric Holder who was hired to look into the company's corporate culture.
At a staff meeting, the company explained the results of an inquiry conducted by Eric Holder, the former US attorney general who Uber hired to look into allegations of harassment, discrimination and an aggressive culture.
Holder's report focused on the company's culture and structure, making recommendations at a macro level.
The recommendations may introduce major changes at Uber, a company that has always been fueled by partying and lavish employee retreats that have involved heavy drinking, drugs, and sex. In his place, a management committee will be in charge of the company as Uber looks to take stock of the company and clean up the company that has been bugged by one scandal after another in recent months.
Enhance Board oversight. The report suggests things such as restructuring the board to include additional independent board seats.
"Uber's termination of a number of employees, including some in senior leadership, has also shown sincerity in action", they added.
Uber's chief executive Travis Kalanick has chose to go on leave, after a series of controversies as well as a personal tragedy due to a death in his family. He said he will be "available as needed for the most strategic decisions", but will be "empowering them to be bold and decisive in order to move the company forward swiftly". It also calls on the company to prohibit the consumption of alcohol during core work hours and to ban the use of controlled substances.
"There is of course much to be proud of but there is much to improve", he wrote. And just last week, Uber fired at least 20 people as part of the internal investigation into sexual harassment at the company.
"Uber should develop specific and clear guidance concerning appropriate workplace relationships, including making clear that any type of romantic or intimate relationship between individuals in a reporting relationship (either direct or indirect) is prohibited", the report recommends. The CEO cited the need to spend time with his family in his memo Tuesday. Uber's diversity figures are similar to the rest of Silicon Valley, with low numbers for women and underrepresented minorities.
Separately, Uber announced on Tuesday that it has hired Apple marketing executive Bozoma Saint John, who will be Uber's chief brand officer. Uber should ditch some of the values people were using to justify bad behavior at the company.
"It's hard to put a timeline on this - it may be shorter or longer than we might expect", he wrote.