UBER embarked on a massive corporate overhaul Tuesday in an attempt to rehabilitate one of the technology industry's most visible, valuable and controversial companies as it struggles to emerge from months of scandal.
Out - at least for now - is brash chief executive Travis Kalanick, who is taking an indefinite leave and, whenever he returns, faces diminished power within the company and on Uber's board of directors, which is adding several new "independent" members and diluting his authority.
But even as the company took steps to signal its seriousness in combating sexual harassment and other unprofessional conduct, David Bonderman, a billionaire businessman on Uber's board, made a quip about women at a company-wide meeting Tuesday that stunned many in the audience.
As fellow board member Arianna Huffington spoke of the need for more women on Uber's board, Bonderman interrupted to say that would make it "much more likely there'll be more talking" at meetings. He later apologized to Huffington and in an email to employees in which he acknowledged the joke was "inappropriate."
The gaffe marred what was otherwise a carefully managed rollout of 47 recommendations by former U.S. attorney general Eric Holder, who along with colleagues at the law firm Covington & Burling spent months investigating Uber's corporate culture. The board adopted all the recommendations Sunday and announced them in Tuesday's meeting to Uber's 14,000 employees.
The moves require a tricky balancing act for a company that, only a few months ago, was among the most widely studied and emulated in the tech industry for its ability to upend an entrenched business model while building nearly $70 billion in investor value.
Yet many of its strengths - a hard-driving culture built by a chief executive determined to surmount any obstacle as the company spread to 75 countries worldwide - contributed to a corporate culture that underscores Silicon Valley's broader struggles with diversity and the treatment of women.
"The ultimate responsibility, for where we've gotten and how we've gotten here rests on my shoulders," Kalanick wrote in an email to employees. "There is of course much to be proud of but there is much to improve. For Uber 2.0 to succeed there is nothing more important than dedicating my time to building out the leadership team. But if we are going to work on Uber 2.0, I also need to work on Travis 2.0 to become the leader that this company needs and that you deserve."
In describing reasons for the leave, Kalanick also cited the death of his mother and serious injury of his father in a boating accident last month.
Stripping some of Kalanick's authority is the first of the 47 recommendations from Holder and his team, which received input from employee polls, focus groups and hundreds of individual interviews.
Though the company has withheld from the public the full text of the report, the changes announced Tuesday signal that contemporary corporate norms of employee behavior were flouted at Uber with impunity.
"The goal is to enforce a zero tolerance policy toward any kind of abusive behavior - whether it's sexual harassment, discrimination, bullying, or any kind of unprofessional behavior," Huffington said in a statement to The Washington Post. "And as I've said again and again, no brilliant jerks will be allowed, and no one will be protected because they are top performers."
The changes run the gamut, including new hiring practices, efforts to improve diversity and new reporting requirements to handle harassment complaints. The report called for a ban on sexual relationships between managers and their subordinates, as well as limits on the consumption of alcohol and a prohibition on using illegal drugs during work hours and at company events.
Employee complaints are to be handled using a comprehensive process, while employee benefits were improved to include equal family leave time for male and female workers.
Even the company's 14 core "values" are getting replaced, because some - such as "Let Builders Build" and "Always Be Hustlin' " - were sometimes "used to justifying poor behavior," according to Holder's report.
Yet the recommendations failed to impress former Uber engineer Susan Fowler, whose February blog post about her experience being sexually harassed triggered the company's decision to commission Holder's report.
"Ha! Yeah, they'll never apologize," Fowler wrote on Twitter in reply to another person. "I've gotten nothing but aggressive hostility from them. It's all optics."
Under the changes announced Tuesday, senior managers will undergo mandatory leadership training, and Uber's position of head of diversity will be renamed as the "chief diversity and inclusion officer" and report directly to the chief executive or chief operating officer. Uber also will adopt the equivalent of the National Football League's "Rooney Rule," requiring that when the company is filling a key job, at least one woman and one minority candidate be interviewed before the hire can go forward.
Reports that Kalanick was considering a leave had sparked speculation over who might lead a company that has been built in the chief executive's image. In his note, Kalanick did not name a temporary chief executive, suggesting instead that he might stay close to operations even while on leave. "During this interim period, the leadership team, my directs, will be running the company," Kalanick wrote. "I will be available as needed for the most strategic decisions, but I will be empowering them to be bold and decisive in order to move the company forward swiftly."
The corporate shake-up at Uber already has prompted several executive departures, including Monday's announcement that Emil Michael, senior vice president for business and a close Kalanick ally and confidant, was leaving amid pressure from the board.
Uber also announced Monday that it was adding a new member, Nestle executive Wan Ling Martello, to one of several empty seats on the board. She is expected to bring financial expertise while also providing another high-profile woman to a company criticized as exemplifying Silicon Valley's male-dominated "bro" culture.
As part of the internal investigation led by Holder, Uber already has fired 20 employees, while issuing reprimands and requiring new training for others amid 215 reports of possible sexual harassment, bullying, retaliation and other unprofessional conduct.
"This is a hugely significant event," said Michael Useem, a management professor at the Wharton School at the University of Pennsylvania. He added that the list of recommendations reads like a textbook from "Leadership and Management 101" and, if implemented effectively, could serve as a model for other Silicon Valley companies grappling with diversity and harassment issues.
The Washington Post
Thu Jun 15 2017

Uber CEO Travis Kalanick speaks to students during an interaction at the Indian Institute of Technology (IIT) campus in Mumbai, India, January 19, 2016. REUTERS/Danish Siddiqui

Astronomers reveal 3D structure of an alien planet's atmosphere
Astronomers find three layers on a scorching gas planet orbiting a star larger and hotter than the sun.

Public flips car involved in road accident to rescue child
According to JBPM, members of the public at the scene took initial action to rescue the victim before the fire brigade arrived.

Ramsay reveals hundreds of lucky cat statues stolen from new restaurant
Gordon Ramsay says about 477 Japanese cat models called maneki-neko were stolen from his Lucky Cat 22 Bishopsgate restaurant.

Zayn Rayyan case: Two child witnesses complete testimony today
So far, 20 prosecution witnesses, including the two children, have been called for this trial, according to the Deputy Public Prosecutor.

Macron says he will tell Trump not to be weak with Putin in Washington visit
Emmanuel Macron says showing any weakness to Russia's Vladimir Putin would make it harder to deal with China and Iran.

Israeli PM Netanyahu says Hamas will pay for not returning Shiri Bibas
Netanyahu accuse Hamas of acting "in an unspeakably cynical manner" by placing body of a Gaza woman in the coffin instead of Shiri Bibas.

Trump pulls US out of key global climate assessment, sources say
The US is a co-chair along with Malaysia of a working group on climate mitigation, or ways to reduce greenhouse gas emissions.

Japan to court Tesla on Nissan investment, FT reports
The group hopes Tesla will invest strategically, believing it's interested in acquiring Nissan's US plants, the report says.

185 children linked to GISB handed over to families - Exco
The children have been handed over to their families on bond with conditions by the court.

IRS fires 6,000 employees as Trump slashes US government
The move will eliminate roughly 6% of the agency's workforce in the midst of the busy tax-filing season.

Elon Musk wields chainsaw at conservative gathering, a gift from Argentina's Milei
This is the chainsaw for bureaucracy, says Elon Musk.
![[OPINION] For never again the world must know more about the Khojaly genocide [OPINION] For never again the world must know more about the Khojaly genocide](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2025-02/41740112820_KhazarUniversity.jpg)
[OPINION] For never again the world must know more about the Khojaly genocide
For Azerbaijanis, the Khojaly genocide is more than a historical event - it is a collective trauma that shapes their identity and worldview.

Israeli military says body released by Hamas is not of a hostage
Two bodies were identified as infants, but a third, believed to be their mother, Shiri, didn't match any hostage and remains unidentified.

Key takeaways from Trump-Putin talks: Ukraine, energy, NATO, sanctions
Here's what is known so far about what was discussed.
![[COLUMNIST] Whose rights? Islam, eurocentrism and the limits of human rights [COLUMNIST] Whose rights? Islam, eurocentrism and the limits of human rights](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-09/41726025526_UnitedNations.jpg)
[COLUMNIST] Whose rights? Islam, eurocentrism and the limits of human rights
For as long as rights are understood on Occidental terms, problems would inevitably remain. What is needed is an appreciation of diversity.

Argentina court clears 3 accused in singer Liam Payne's death
The court upheld the pre-trial detention of a hotel employee and a restaurant waiter held since last month.

Spanish ex-soccer boss Rubiales sentenced to pay fine over kiss without consent
Court also acquits Luis Rubiales' three co-defendants accused of attempting to coerce Jenni Hermoso into saying the kiss was consensual.

King’s health significantly improved after treatment - PM
Datuk Seri Anwar Ibrahim says he had the opportunity to seek an audience with the King twice during his official visit to Bahrain.

Why Trump wants the US Department of Education shut down
The vast majority of US children attend the country's free public schools, which are a big employer and economic engine.

How did a jet flip upside down on a Toronto runway and everyone survive?
Here is what we know about this accident and similar crashes.