Engineer Who Exposed Uber's Culture Crisis Calls Internal Investigation "All Optics"

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Susan Fowler, the former Uber software engineer whose viral blog alleging systemic sexism and harassment prompted the company to launch an internal investigation, on Tuesday called that investigation “all optics.” Fowler's criticism came after Uber released the findings of that probe, outlining dozens of recommendations that the ride-hail giant's board says it plans to implement. The company last week said it investigated more than 200 claims of harassment and discrimination, among other allegations, and fired 20 people.

Liane Hornsey, Uber's chief human resources officer, spoke to employees at an all-hands meeting on Tuesday announcing the report's findings. She thanked Fowler during the meeting for being a catalyst for change at the company.

Fowler did not return a request for comment from BuzzFeed News.

Days after Fowler's blog published on February 19, Uber chief executive Travis Kalanick met with more than 100 female engineers at the company. During the meeting, he promised “credible, thorough justice” via an internal investigation by former Attorney General Eric Holder. Kalanick was grilled by the group, who urged him to begin “listening to your own people,” according to an audio recording obtained by BuzzFeed News. “Everyone who’s in these rooms now … believes that there is a systemic problem here,” another participant said, prompting applause.

On Sunday, Uber's board unanimously voted to adopt all recommendations from the Holder report, which we've outlined here.

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An Early Investor Says Uber Has An Opportunity To "Reset The Culture"

Early Uber investor Freada Kapor Klein told BuzzFeed News that she sees opportunity for Uber to start over after allegations of sexual harassment, discrimination, and a hostile work environment.

“One of the things abut a rapidly growing company is that most of the people are new, so there is an ongoing opportunity to reset the culture,” she told BuzzFeed News Tuesday morning.

On Tuesday, the company released publicly a 12-page list of recommended changes to company structure and culture, which were unanimously approved by the company's board at a meeting on Sunday. They are the result of an independent investigation led by former attorney general Eric Holder into allegations of pervasive sexism and sexual harassment at the company, which is valued at nearly $70 billion.

On Monday, the company's top business executive, Emil Michael, resigned, and on Tuesday, CEO Travis Kalanick announced he would be taking a leave of absence. (Kalanick is also grappling with a family tragedy.)

“With Travis stepping aside and Emil having resigned, and several other departures, with a thoroughgoing set of values and recommendations and controls and audits and checks on the behavior of senior leaders, I think there’s a possibility that things could indeed turn around,” Kapor Klein said.

Kapor Klein with a friend in 2013

Flickr/UC Irvine / Via Flickr: ucirvine

Kapor Klein has been openly critical of the workplace culture at Uber since former engineer Susan Fowler wrote a widely read blog post describing the alleged discrimination and harassment she experienced at the company.

In February, Kapor Klein, along with her husband and co-investor Mitch Kapor, published an open letter lambasting the “toxic pattern” of “sexism, sexual harassment and horrendous management at Uber.” They also criticized Kalanick for selecting “a team of insiders” to conduct the internal investigation into these allegations.

But today, following the public release of the report, Kapor Klein called the investigation “comprehensive,” and praised the willingness of the team to seek outside expertise on tech culture.

Kapor Klein, who reviewed the Holder report prior to today, said she's been in touch with both Liane Hornsey, Uber's head of human resources, and Bernard Coleman, Uber's head of diversity, in recent months. But what her role as a concerned investor will be going forward — whether she'll have a seat on an external advisory board, or what the mechanisms for ensuring Uber does follow these recommendations — remains unclear.

Not everyone was as optimistic as Kapor Klein following the release of the report today. On Twitter, Fowler said her complaint against Uber isn't about an aggressive or sexist culture, but about “laws being broken.”

Kapor Klein said the Holder report was intended to be forward-looking, and believes the company is committed to ensuring that “no person is ever treated like Susan Fowler was treated.” But the question of what, if anything, will be done to make up for the mistakes of the past remains.

“Certainly I think that Susan Fowler, and the employees who suffered in the past, who’ve been mistreated, who've been dismissed, and retaliated against. All those horrible things that have happened – in no way do I think that ought to be forgotten,” she said. “I’d be interested in hearing whether there’s anything that Uber or any other company could do for Susan, to make her whole.”

The recommendations made in the Holder report are, in some cases, quite granular. For example, the report recommends scheduling nightly catered dinners earlier, so that employees can take advantage of the benefit without staying late at work every night. Other parts of the report have specific suggestions for dealing with alcohol in the workplace.

On the surface, it would seem some of the suggestions could apply broadly to a number of companies in the tech industry. But Kapor Klein warned against copy-catting the recommendations without adequate soul-searching. “I would be cautious and would not encourage another company to go through the Holder recommendations and adopt them wholesale,” she said. “Each of the categories needs to be addressed, but in the context of one's business and one's culture and one's values.”

In addition being a founding partner of Kapor Capital, Kapor Klein is a founding member of Project Include, a group that provides advice on diversity and inclusion issues. She said many tech companies have expressed an interest in examining their own workplace practices in recent months, and that the Uber employees who were involved in the months-long process of bringing issues at Uber to the surface should “take some pride in being part of a seismic shift in the tech ecosystem.”

She also said she'll continue to hold Uber accountable.

“We think that Uber ought to be given an opportunity to execute on these recommendations, to do so quickly and unequivocally, but that they ought to be given a chance to do so. And if they don’t do so quickly they deserve all the wrath of everyone.”

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Uber CEO Travis Kalanick Is Taking A Leave Of Absence

Travis Kalanick

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Uber CEO Travis Kalanick will take a leave of absence from the company, he announced in an email to employees Tuesday.

“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,” Kalanick wrote in an email obtained by BuzzFeed News. “During the interim period, the leadership team, my directs, will be running the company.”

Uber's board discussed a potential leave of absence for Kalanick at a board meeting Sunday but did not make any decisions on the matter.

Uber's board met on Sunday in Los Angeles to hear recommendations from former attorney general Eric Holder and Tammy Albarrán after their internal investigation into the company's culture, following allegations of systemic sexism and sexual harassment at the company. “The Board unanimously voted to adopt all the recommendations of the Holder Report. The recommendations will be released to the employees on Tuesday,” a representative for the board said in a statement.

Kalanick's break from the company comes after months of turmoil, as well as a personal tragedy: his mother died in a boating accident last month, and his father was in serious condition.

Members of the board had previously professed faith in Kalanick despite the growing controversies. Still, Kalanick's sabbatical will contribute to a leadership void at Uber, as more than a dozen executives have departed this year alone. The company has for months been searching for a chief operating officer to serve as No. 2 to Kalanick.

Uber has faced crisis after crisis this year. In January, Kalanick dropped out of President Trump’s economic advisory group before its first meeting after protests outside the company's headquarters, employee dissent, and a #DeleteUber backlash that inspired about 200,000 users to delete their accounts. On Feb. 19, a female ex-engineer posted a viral blog detailing systemic sexism at the company, prompting an internal investigation into Uber's workplace culture. Kalanick apologized and promised Uber would “do better.” Later that month, a video surfaced of Kalanick yelling at an Uber driver during an argument about fares. Kalanick, 40, pledged to “grow up” and get “leadership help.” Employees at the company have told BuzzFeed News the incidents have shaken their faith in Kalanick as a leader.

Uber is also embroiled in a bitter trade secrets lawsuit from Alphabet's autonomous vehicle unit Waymo, which alleges that its former employee – who later joined Uber – stole information that the ridehail giant is benefitting from. The company admitted it had shortchanged drivers in New York by millions of dollars over the course of more than two years. The Justice Department opened a criminal investigation into the company's efforts to evade regulators. Recode reported that Kalanick advised employees on sex rules for a company party in Miami in 2013.

Kalanick became CEO of Uber in December 2010, replacing Ryan Graves, who sits on the board and serves as senior vice president of global operations.

Here's Kalanick's full email to employees:

Team,For the last eight years my life has always been about Uber. Recent events have brought home for me that people are more important than work, and that I need to take some time off of the day-to-day to grieve my mother, whom I buried on Friday, to reflect, to work on myself, and to focus on building out a world-class leadership team.

The ultimate responsibility, for where we’ve gotten and how we’ve gotten here rests on my shoulders. 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.

During this interim period, the leadership team, my directs, will be running the company. 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.

It’s hard to put a timeline on this – it may be shorter or longer than we might expect. Tragically losing a loved one has been difficult for me and I need to properly say my goodbyes. The incredible outpouring of heartfelt notes and condolences from all of you have kept me strong but almost universally they have ended with ‘How can I help?‘. My answer is simple. Do your life’s work in service to our mission. That gives me time with family. Put people first, that is my mom’s legacy. And make Uber 2.0 real so that the world can see the inspired work all of you do, and the inspiring people that make Uber great.

See you soon,

Travis

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Uber CEO Will Have Less Power After An Internal Investigation Into Company's Culture

Travis Kalanick

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An internal investigation into Uber's culture recommended that chief executive Travis Kalanick release some of his iron grip on the company, that the ride-hail giant hold its senior leaders accountable, and that create an ethics committee.

The findings were made public Tuesday after Uber announced in February that it would launch an internal investigation, led by former attorney general Eric Holder, into allegations of pervasive sexism and sexual harassment.

A representative for Uber’s board said it unanimously approved all recommendations from the Holder report at a meeting on Sunday — but did not reveal what those recommendations were. The board also discussed whether Uber chief executive Travis Kalanick should take a leave of absence for three months, but did not make any decisions, people familiar with the matter told BuzzFeed News. (Kalanick is also grappling with a family tragedy.)

Uber launched two internal investigations into its workplace culture in February, after former engineer Susan Fowler published a viral blog post alleging sexism and sexual harassment at the company. The first investigation, led by the law firm Perkins Coie, focused on Fowler’s claims. Uber told employees last week that investigators looked into 215 reported claims about issues related to discrimination, sexual harassment, unprofessional behavior, bullying, harassment, retaliation, and physical security. The company said it fired 20 people as a result. The ride-hail giant also brought on Holder and Tammy Albarrán from the law firm Covington & Burling to create a report on its workplace and culture. The firms interviewed current and former employees.

The results of that report come after the company has dealt with months of unrelenting crises. It is facing a leadership void after the departures of more than a dozen executives, including Kalanick’s close confidant Emil Michael, who left the company Monday. It’s unclear whether he was fired or quit.

In addition to its culture crisis, Uber is facing a damning trade secrets lawsuit from self-driving competitor Waymo, part of Google’s parent company. That lawsuit led the company to fire the former head of its self-driving program.

In March, Kalanick was caught on video yelling at an Uber driver during an argument over fares and apologized. “It’s clear this video is a reflection of me—and the criticism we’ve received is a stark reminder that I must fundamentally change as a leader and grow up,” Kalanick wrote in an apology to staff. “This is the first time I’ve been willing to admit that I need leadership help and I intend to get it.” To help, Uber has been searching for a chief operating officer to serve as a No. 2 to Kalanick. That search is still underway.

Leadership has pledged Uber will change. Kalanick told a group of more than 100 female engineers at the company that “I want to root out the injustice. I want to get at the people who are making this place a bad place. And you have my commitment.” Board member Arianna Huffington told reporters during a damage control press call in March the company intends to “make Uber the most admired place to work in.” The company has since implemented a confidential employee hotline, doubled its employee-relations team and put in place a formal system to track employee complaints.

Still, a stream of revelations about the company in recent months have led to questions as to how much Uber can change. Uber investors Mitch and Freada Kapor have since at least 2010 been working to “exert a constructive influence” the Uber’s culture, they wrote in an open letter to the board in February. “We feel we have hit a dead end in trying to influence the company quietly from the inside,” they wrote.

Amid the departures and personnel changes as a result of the internal probes, Uber announced last week that it had hired Harvard Business School professor Frances Frei as senior vice president of leadership and strategy. The company called her “one of the world’s most respected authorities on organizational transformation.”

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