Experts say Uber needs repairs to its corporate culture.
DETROIT — Uber must get rid of leaders who tolerate bad behavior and hire people who don’t — including up to the chief executive — experts say, as the ride-hailing company gets ready to announce significant changes to its culture and management.
Uber’s board has adopted the recommendations of former Attorney General Eric Holder, who investigated its toxic culture of harassment and bullying. Those will be revealed to employees and made public on Tuesday.
Experts interviewed by the Associated Press say CEO Travis Kalanick should step aside or at minimum change his behavior for the company to make progress. Uber’s board is discussing a leave of absence for Kalanick.
Last week, based on a report from a law firm that investigated employee harassment, bullying and retaliation complaints, Uber fired 20 people and sent another 31 into counseling. Experts say it’s an unprecedented number of firings that shows a pervasive problem, but also is a strong step toward rehabilitation. Who the company hires as replacements will make or break the effort, they say.
Uber must hire people who “don’t have the harassment state of mind,” said Cindy Schipani, a business law professor at the University of Michigan.
On Monday, Uber said its chief business officer, Emil Michael, is leaving the company. No reason was given for his departure.
Uber Technologies has been rocked by accusations that it has fostered a workplace environment that condones harassment, discrimination and bullying. It’s also facing a federal investigation into claims that it used a fake version of its app to thwart authorities.
Amid the turmoil at the world’s largest ride-hailing company, rivals such as Lyft are trying to take advantage, growing ridership and inking tech deals.