Uber CEO to Take Leave, Diminished Role After Workplace Scandals

Uber CEO Travis Kalanick told staff he plans to take a leave of absence, without disclosing a return date, according to Bloomberg. The company will strip him of some duties and appoint an independent chair to limit his influence after a slew of scandals, according to an advance copy of a report prepared for the board.

At a staff meeting the company conveyed the results of a probe conducted by Eric Holder, the former U.S. attorney general who Uber hired to look into allegations of harassment, discrimination and an aggressive culture. The 47 recommendations include creating a board oversight committee, rewriting Uber’s cultural values, reducing alcohol use at work events, and prohibiting intimate relationships between employees and their bosses. Uber’s board met to review a detailed version of the report and voted unanimously to approve the recommendations. Afterward, the San Francisco-based company ousted Emil Michael, Uber’s head of business.

Upon Kalanick’s return, the board will move to diminish his role by giving some of the CEO’s job responsibilities to a chief operating officer, a position Uber has been actively recruiting for but has yet to fill. This person would “act as a full partner with the CEO but focus on day-to-day operations, culture and institutions within Uber,“ the report said. Uber lost or removed much of its management team in recent months as scandal after scandal emerged. Last week, it hired Harvard Business School’s Frances Frei as senior vice president of leadership and strategy, and will add Nestle’s Wan Ling Martello as an independent director.

Despite recent turmoil, Uber’s business is growing. Revenue increased to $3.4 billion in the first quarter, while losses narrowed, though they remain substantial at $708 million. But Lyft has stolen some market share in the U.S., and Uber’s internal strife could open opportunities for competitors globally to lure partners, raise funds or poach talent.