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'Restructuring of the leadership team' is coming at Uber, board member Arianna Huffington says

Key Points
  • An internal investigation resulted in the dismissal of 20 employees at Uber this week
  • Results of a separate investigation, led by former U.S. Attorney General Eric Holder, will be released at an all-hands meeting next Tuesday
  • Huffington is the only female board member
Huffington: Uber is taking very strong measures to change the culture
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Huffington: Uber is taking very strong measures to change the culture

Uber board member Arianna Huffington said there will be "restructuring of the management team" at Uber, after the company announced the firing of 20 workers and hired two new executives.

An internal investigation resulted in the dismissal of 20 employees this week for complaints around discrimination, sexual harassment, bullying, retaliation and more. The investigation stemmed from claims from former Uber engineer Susan Fowler that the company repeatedly failed to act on her complaints around sexual harassment and gender bias.

Uber also announced this week it had hired two women — Apple Music's Bozoma Saint John and Harvard Business School's Frances Frei — to join the leadership team. The start-up is still on the hunt for a chief operating officer.

Speaking from the iCONIC Conference in New York, presented by Inc. and CNBC, media mogul Huffington said:

"We had some great results yesterday ... with the announcement of Professor Frances Frei from Harvard, to lead the strategy and leadership and help with the training — both of senior leaders but also helping all the managers, all the 3,000 managers at Uber, to learn to work collaboratively, to learn to work in teams. And also the announcement of Boz Saint John as chief brand officer. She left Apple to join Uber, and she's in charge of bringing humanity — and the emotional connection that she's so great at — to the brand.

So a lot of great hires to come, and basically the restructuring of the leadership team."

Huffington also clarified her comments on the workplace culture at Uber in the interview, which aired on CNBC's "Squawk on the Street" on Wednesday. She told CNN in March that sexual harassment was not a "systemic problem" at Uber.

It all depends on your definition of 'systemic.'
Arianna Huffington
Uber board member, on sexual harassment at Uber

Out of 215 claims in the latest investigation, 100 were uncorroborated and 47 claims were related to sexual harassment. Huffington said her goal is to bring that to zero.

"I never said there wasn't a systemic cultural problem, I was talking specifically about sexual harassment," Huffington said. "It all depends on your definition of 'systemic.'"

Results of a separate investigation, led by former U.S. Attorney General Eric Holder, will be released at an all-hands meeting next Tuesday, Huffington confirmed. She said there is a "restructuring of the management team" at Uber.

"We are going to be releasing the recommendations exactly as Eric Holder and his team have provided them," Huffington said. "But of course it is not the full report because of privacy and prejudice reasons."

Huffington, the sole woman on Uber's board, said that the process started yesterday is the beginning of "very strong measures to change the culture" at Uber. She noted that CEO Travis Kalanick has terminated Anthony Levandowski, who has been accused of taking trade secrets from his former employer, Alphabet, but declined to comment further on the case.

The start-up's rapid expansion has been part of the challenge for Uber, Huffington said, as the structures and processes failed to keep pace. The time-consuming investigations have been an "inflection point" for the company, Huffington said.

"This could actually create a new way for companies — especially in the Valley, where these problems are much more rampant — to address them in a transparent way," Huffington said.

— Correction: This story was revised to show the number of claims should be 215.