As reported by several sections of the media over the weekend, the Uber's flamboyant CEO Travis Kalanick is now going to take a Leave Of Absence. Uber's troubles over the past few months have attracted a lot of bad press and there are genuine concerns that the company might be on the verge of implosion and corrective measures became necessary. Kalanick shared the news with members of Uber staff today, according to Bloomberg report.
Indefinite leave of absence
Kalanick told the Uber staff that he would be taking a leave of absence but what is a bigger news is the fact that he did not specify when he would be coming back.
Following the allegations of sexual harassment at the workplace and other associated malpractices, the company ordered an independent probe. The members of the board at Uber met this past Sunday to decide on how they were going to implement the recommendations put forward by Eric Holder in his investigation.
However, plenty of insiders had tipped off the press that Kalanick could be sent on a leave of absence. That is exactly what has happened. In addition to going on leave, the CEO's role in the day to day management of the business is also going to be severely curtailed. In his place, a management committee will be in charge of the company as Uber looks to take stock of the company and clean up the company that has been bugged by one scandal after another in recent months.
A seismic shift
Earlier this year, Kalanick had stated that he would reform himself after a video of him arguing with an Uber driver went viral but the scandals emanating out of the company continued unabated. In is e-mail to Uber employees, he stated that the company needs a fresh beginning and if the fresh beginning has to be successful then Kalanick himself would need to reinvent himself.
He stated, “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.”
Over the recent months, there has been a significant change in the top management of the company with many senior executives being fired or resigning and it seemed that it was only a matter of time before Kalanick would find himself in the wilderness, as it were. However, it is important to point out that the company's core business has been doing well as ever and the company's losses dropped significantly in the latest quarter.
