Uber CEO to take leave, leadership team to run company

Dianna Christensen
June 14, 2017

Mr Kalanick told employees about his decision in an email as the firm was urged to transform its toxic culture.

The CEO also copped criticism in 2014 when he told GQ that he referred to Uber as "Boob-er" because it helped him attract women.

Uber's CEO Travis Kalanick announced Tuesday that he would take a leave of absence amid criticism of the workplace culture the New York Times reported.

"Leaders need to step aside when they have peaked, learn critical lessons, rethink strategies...and then reinvent themselves", Wadhwa said on Twitter.

Uber released the 13-page Holder report today, two days after the company's board voted unanimously to adopt all recommendations contained in it. Uber also should appoint an independent chairman and create an oversight committee on the board, in an effort to bolster the checks and balances on management, according to the recommendations.

"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.

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Uber is up to its ears in trouble, and big changes may be required to get the company back on the right track. The investigation into Uber has resulted in a long "to-do" list for the company, but it remains to be seen how well they will clean up their act. Two employees were to be given additional training, and five more were issued final warnings.

Mitch and Freada Kapor, early Uber investors who previously blasted the company's culture, praised the steps taken Tuesday. The executive summary from Covington & Burling LLP, made public as Uber addressed staff in an all-hands meeting at its San Francisco headquarters, made broad recommendations that were approved by the company's seven-member board.

"Uber's termination of a number of employees, including some in senior leadership, has also shown sincerity in action", they added. In 2014, Michael was forced to publicly apologize after suggesting that Uber should dig up and publicize dirt on journalists who are critical of the company. Eric Alexander, the president of the company's Asia business, was also fired after reports that he shared the medical files of a rape victim with others at the company. The board now has eight voting members, three of whom are from within the company.

Kalanick frequently recounts how the idea behind Uber was born, when he and a colleague were attending a technology conference in Paris and failed to find a taxi on a cold night.

But Kalanick has acknowledged his management style needs improvement.

Kalanick's leave of absence was largely left to the chief executive to decide himself, people with knowledge of the situation have said. That included a search for a COO who might do for Kalanick what Sheryl Sandberg did for Mark Zuckerberg at Facebook. Kalanick said he would be available "as needed" for the "most strategic decisions " but would generally be allocating responsibilities to the company's leadership team-or what remains of it after weeks of high-profile departures.

Other reports by GlobalViralNews

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