Restaurant Closes and Owner Says Little

Guy's American Kitchen and Bar in Times Square, NYC, will close after just five years and plenty of controversy. The owner, Guy Fieri, has a big personality and has been known to be defensive when criticized. After a scathing 2012 review of the restaurant, Fieri went on the Today show to voice his reaction:

"I thought it was ridiculous. I mean, I've read reviews —- there's good and there's bad in the restaurant business, but that to me went so overboard, it really seemed like there was another agenda."

"The tone, the sarcasm, the question style."

"To me, it's impossible to come in and have a dining experience and have every single thing is wrong, unless you come in with a different agenda and you want to sensationalize something and you want to blow it out of the water. It's a great way to make a name for yourself — go after a celebrity chef that's not a New Yorker that's doing big concept in his second month. Great way to hit it."

Now, Fieri isn't saying much about the decision to close. The restaurant website homepage, shown here, looks like business-as-usual, and Eater reports an "update" on its article:

"Update: In a statement to Eater via a spokesperson, Fieri did not shed light on the reason for the closure, but noted he is 'proud' of serving millions of people throughout the years and thanked his team."

Discussion:

• Compare the process of closing this business with that of Book World, also recently announced. How do the companies' approaches differ? 
• Fieri could demonstrate some humility and vulnerability, but we don't see much. How could a different reaction help him?

Book World Announces Closing

The country's fourth-largest bookstore is closing the last of its 45 stores. Communicating such bad news is difficult for any leader. Book World was a family-owned business since 1976, which probably makes the decision even more painful.

The announcement, including book liquidation plans, is posted on the company's website. We see some of the writers' personality with the abundant use of exclamation points. Otherwise, the message is fairly straightforward.

Discussion:

• How do we see Book World's leaders demonstrating authenticity and vulnerability in this post?
• What's your view of the exclamation points? When is it appropriate to use these marks in business writing, and when is it overkill?
• What else, if anything, should the Book World statement include?

How Should Companies Handle the Annual Holiday Party?

Companies have finally tackled the "Christmas" controversy to call their annual gatherings "Holiday" parties, and now they have a new challenge. With all of the sexual harassment allegations, how can they make their parties safe AND fun?

Bloomberg reports how some companies are addressing the issue. Vox Media Inc., for example, ended its open-bar tradition, which has disappointed some employees, and Besh Restaurant Group will limit alcohol consumption. Uber and Creative Artists Agency cancelled their parties after allegations of harassment, while other companies are forging ahead as planned.

The number of parties has been decreasing, anyway, since the 90's, and fewer companies include alcohol at their events.

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Discussion:

• What do you think companies should do about their holiday party this year? What are the arguments for and against having party with alcohol.
• According to one survey, 90% of employees would rather have a bonus or extra vacation days than attend a company holiday party. Why do companies still have them at all?

Delta Communicates Flight Cancellations

Delta announced that about 375 flights were cancelled because of weather conditions around Atlanta. In a short statement on its website, Delta explained the decision and provided customers with sources for more information.

Since the first announcement, Delta posted a large notice on the site: "UPDATED: Delta teams working through night to reset ATL operations." The company also posted updates at noon and again at 4 pm.

Discussion:

• Read the entire statement on the Delta website. Analyze the primary audience and identify the communication objectives. How well does the company meet these objectives?
• Assess the organization. Where are the main points, and how is the rest of the message structured?

NBC Fires Matt Lauer

Another media star has fallen after reports of sexual harassment. NBC fired Matt Lauer after one complaint, but the company mentioned more were likely—and they have come.

Several women tell about Lauer's inappropriate attention, advances, and exposure. He played what Variety called a "crass quiz" at work that categorized women.  

Lauer worked for NBC since 1994, mostly as a "Today" show co-host. Known as "the crown jewel of the network’s news division," Lauer interviewed U.S. presidents and other senior leaders and celebrities throughout this career.

On air, Savannah Guthrie, Lauer's co-host on the show, read a statement from NBC Chairman Andy Lack. She was emotional as she read the decision.

Lauer issued this apology statement: 

"There are no words to express my sorrow and regret for the pain I have caused others by words and actions. To the people I have hurt, I am truly sorry. As I am writing this I realize the depth of the damage and disappointment I have left behind at home and at NBC.

"Some of what is being said about me is untrue or mischaracterized, but there is enough truth in these stories to make me feel embarrassed and ashamed. I regret that my shame is now shared by the people I cherish dearly.

"Repairing the damage will take a lot of time and soul searching and I'm committed to beginning that effort. It is now my full time job. The last two days have forced me to take a very hard look at my own troubling flaws. It's been humbling. I am blessed to be surrounded by the people I love. I thank them for their patience and grace."

Discussion:

• How well does Guthrie handle the announcement?
• Did NBC do the right thing in terminating Lauer? Was it too much of a risk after just one complaint?
• Assess Lauer's apology. How convincing do you find the statement? What else, if anything, could he say?

CBS This Morning Responds to Charlie Rose

After CBS co-host Charlie Rose was suspended for sexual misconduct, Gayle King and Norah O'Donnell were left to pick up the pieces. They didn't shy away from addressing issues directly. 

O'Donnell read from a script, and King had a script but didn't follow it as closely. She spoke from a more personal perspective, saying she is "not OK," and "I am still reeling." She mentioned her personal relationship with Rose but said, "He doesn't get a pass."

King hit on some points we haven't been hearing much about during all of reports of sexual misconduct, for example, the impact on women's bodies and on their careers and on what it's like for people close to an accuser to have conflicting, confusing feelings about the person.

The Washington Post covered allegations of sexual misconduct against Rose, including eight women, whose stories had "striking commonalities." Rose issued an apology statement:

“In my 45 years in journalism, I have prided myself on being an advocate for the careers of the women with whom I have worked,” Rose said in a statement provided to The Post. “Nevertheless, in the past few days, claims have been made about my behavior toward some former female colleagues.

“It is essential that these women know I hear them and that I deeply apologize for my inappropriate behavior. I am greatly embarrassed. I have behaved insensitively at times, and I accept responsibility for that, though I do not believe that all of these allegations are accurate. I always felt that I was pursuing shared feelings, even though I now realize I was mistaken.

“I have learned a great deal as a result of these events, and I hope others will too. All of us, including me, are coming to a newer and deeper recognition of the pain caused by conduct in the past, and have come to a profound new respect for women and their lives.”

Discussion: 

• What's your view of this segment? How well do you think the co-hosts handled the situation?
• Assess Rose's apology. How does it compare to others we have seen?
• Rose was revered in the industry, but CBS didn't hesitate in suspending him. Did they do the right thing?

Florida State University Suspends Greek Life Activities

A fraternity member's death was the last straw for the president of Florida State University. John E. Thrasher suspended all fraternity and sorority activities on campus, calling for "a new normal for Greek life."

The student death, which occurred during pledging, follows another student death in September and cocaine charges for another member. In a statement, Thrasher explained the decision and called on the Greek community to find innovative practices. He emphasized the importance of the pause: "The president said this pause is needed to review and reflect on the loss of a young life."

In a long list, the university itemizes what is not allowed, including meetings or events, and specific FSU activities are mentioned, such as Homecoming "pomping, skit night, or spear-it night."

Discussion:

• The university website refers to the decision as an "indefinite interim suspension." Sounds redundant, doesn't it? Do you think this is intentional or a grammatical oversight?
• Assess the university's FAQs. How well does the administration anticipate and address questions?
• The president is demonstrating compassion and courage, but of course, not everyone agrees with the decision. What are the counterarguments?

Air Force Admits Failure

The U.S. Air Force admits it didn't properly report Devin P. Kelley's history to federal law enforcement. The error is critical because Kelley's violent past may have prevented him from buying guns he used to kill 26 people in a Texas church. Kelley spent 12 months in prison and left the Air Force with a "bad conduct" discharge after harming his wife and child.

Air Force spokeswoman Ann Stefanek said, "Initial information indicates that Kelley's domestic violence offense was not entered into the National Criminal Information Center database." This omission led to Kelley's passing the background check before he could purchase guns at a firearms retailer.

Of course, the incident raises bigger questions about how often relevant background information is not reported about former service members. U.S. Air Force Sec. Heather Wilson appeared on MSNBC's Squawk Box to admit the failings during a televised interview. When asked whether she was concerned about possible liability from victims' families, she said, "No, I'm more interested in responsibility. And we've taken responsibility, and we're going to find out what happened and fix it.”

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Discussion:

• The Air Force has readily admitted a critical failing, which could have led to 26 deaths. Why would the organization choose this disclosure?

• Describe how Wilson is demonstrating vulnerability. What are the potential downsides?

We Learn More About Kevin Spacey

Not so shocking, more people are coming forward to complain about Kevin Spacey's sexual behavior. Crew members of "House of Cards" say he created a "toxic" work environment, particularly for young men. A production assistant accused him of assault, and seven others tell stories of aggressive touching, inappropriate comments, and other harassing behavior.

Spacey is experiencing more fallout from the news. In addition to Netflix's ending the show and the Emmy's cancelling a special award, Netflix announced it will not allow Spacey back on set. The company issued this statement: 

"Netflix was just made aware of one incident, five years ago, that we were informed was resolved swiftly. On Tuesday, in collaboration with MRC, we suspended production, knowing that Kevin Spacey wasn't scheduled to work until Wednesday. Netflix is not aware of any other incidents involving Kevin Spacey on-set. We continue to collaborate with MRC and other production partners to maintain a safe and respectful working environment. We will continue to work with MRC during this hiatus time to evaluate our path forward as it relates to the production, and have nothing further to share at this time."

His publicist and talent agency also ended their relationship.

Discussion:

• Knowing more about the complaints now, do you think Spacey should have handled his initial apology to Anthony Rapp and coming out statement differently?
• Assess Netflix's statement: who is the audience, and what are the communication objectives? What works well, and what could be improved?
• What's your view of the publicist ending their relationship? What if the publicist helped Spacey with the initial statement? Does that change your view? Why or why not?

A Chef Resigns After Sexual Harassment Charges

An investigation found 25 employees of Besh Restaurant Group claiming sexual harassment. BRG owns 14 restaurants, including Restaurant August in New Orleans and Johnny Sanchez in New Orleans and Baltimore.

The women describe a hostile working environment where "vulgar and offensive comments, aggressive unwelcomed touching, and sexual advances were condoned and sometimes even encouraged by managers and supervisors." Some charges were against John Besh, co-owner of the group.

When faced with the first complaint, Besh said it was "a consensual relationship with one member of my team." But additional women came forward, and it became more difficult for Besh to isolate the incident. BRG announced Besh's decision to resign. In an email to employees, CEO Shannon wrote, "John has decided to step down from all aspects of operations and to provide his full focus on his family."

Besh and BRG issued statements in response to the claims.

John Besh's statement:

"Two years ago, I deeply hurt those I love by thoughtlessly engaging in a consensual relationship with one member of my team. Since then I have been seeking to rebuild my marriage and come to terms with my reckless actions given the profound love I have for my wife, my boys and my Catholic faith. I also regret any harm this may have caused to my second family at the restaurant group, and sincerely apologize to anyone past and present who has worked for me who found my behavior as unacceptable as I do.

"I alone am entirely responsible for my moral failings. This is not the way the head of a company like ours should have acted, let alone a husband and father. But it should not taint our incredible team of more than 1,000 employees, nor undermine our unyielding commitment to treating everyone with respect and dignity, regardless of gender, race, age and sexual preference."

Statement from Raymond Landry, Besh Restaurant Group's general counsel:

"We have learned recently that a number of women in our company feel that we have not had a clear mechanism in place to allow them to voice concerns about receiving the respect they deserve on the job. I want to assure all of our employees that if even a single person feels this way, it is one person too many and that ends now.

"While we've had a complaint procedure in place that complies with all existing laws, we now recognize that, as a practical matter, we needed to do more than what the law requires and we have revamped our training, education and procedures accordingly. Now that we have learned of these concerns, we believe going forward that everyone at our company will be fully aware of the clear procedures that are now in place to safeguard against anyone feeling that his or her concerns will not be heard and addressed free from retaliation."

Discussion:

• Analyze Besh's response: the first attempt, his statement, and his decision to step down.
• How well does Landry's statement for BRG address the situation? What, if anything, should the company do differently?

Pro-Life Congressman Resigns

We might expect a congressman who serves on the U.S. government's House Pro-Life Caucus to be against abortion in his personal life. But Representative Tim Murphy reportedly suggested that his girlfriend get an abortion if she is pregnant.

A women who says she was having an affair with Murphy went public with text messages:

She: "...zero issue posting your pro-life stance all over the place when you had no issue asking me to abort our unborn child just last week when we thought that was one of the options."

He: "I've never written them. Staff does them. I read them and winced. I told staff don't write any more."

Curiously, he didn't dispute her allegation about the abortion request. Pro-life advocates criticized Murphy for his "hypocrisy."

Although the woman wasn't pregnant, Murphy resigned from his position. House Speaker Paul Ryan announced the decision, saying "I think it's appropriate he move on to the next chapter in his life." Murphy said he'll "take personal time to seek help as my family and I continue to work through our personal difficulties." 

Murphy also posted a statement on his website:

Statement From Congressman Tim Murphy

For Immediate Release: October 4, 2017
Contact: Carly Atchison 202.225.2301

WASHINGTON, DC - Today Congressman Tim Murphy (PA-18) released the following statement:

"After discussions with my family and staff, I have come to the decision that I will not seek reelection to Congress at the end of my current term.
 
"I plan to spend my remaining months in office continuing my work as the national leader on mental health care reform, as well as issues affecting working families in southwestern Pennsylvania.
 
"We have accomplished much in the past year through the Helping Families in Mental Health Crisis Act and there is much work yet to be done.
 
"In the coming weeks I will take personal time to seek help as my family and I continue to work through our personal difficulties and seek healing. I ask you to respect our privacy during this time." 

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Discussion:

• Assess Murphy's statement. How well does his address the situation? What else, if anything, could he say, or what could he say differently?
• In what ways is this situation an issue of integrity? Do you see a contradiction, or do you believe Murphy's political stance and personal stance may differ?

Equifax Visits Congress

Former Equifax CEO Richard Smith admitted failures during a House Energy and Commerce Committee hearing. Smith had already apologized in a video statement, but during the hearing, he mentioned his personal accountability:

"The criminal hack happened on my watch. I am truly and deeply sorry for what happened."

Yet critics say that Equifax is still not taking full responsibility. A TechCrunch article highlights Smith's testimony blaming one person: 

"The human error was that the individual who's responsible for communicating in the organization to apply the patch, did not."

The TechCrunch writer seems to think this is ridiculous:

"The notion that just one person didn't do their job and led to the biggest breach in history is quite an amazing claim and shows a fundamental lack of good security practices. But that's what Smith says led to this disaster."

Smith and Equifax's CIO retired from the company after the news became public, which took a while: executives apparently knew about a software issue back in March, but the company didn't announce the breach until September.

A Wired article cites "6 Fresh Horrors from the Equifax CEO's Congressional Hearing." In addition to the delayed admission, the article attack's Equifax's technology, including inadequate patching, failure to encrypt data, limited security reviews, and insufficient website capabilities.

Another twist is this case is why three top people in the company sold $1.8 million in stock around the time they would have learned of the breach. Smith denies questions of integrity:

"I've know these individual for up to 12 years. They're men of integrity. I have no indication that they had any knowledge of the breach when they made this sale." 

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Discussion:

• Assess Smith's testimony. What parts do you find most and least convincing? 
• What else, if anything, should Equifax do now to rebuild trust?
• In what ways is this case an issue of integrity?

SoFi CEO's Resignation Letter

SoFi CEO Michael Cagney has stepped down after sexual harassment charges. This is a blow to tech start-ups, like Uber, that have been criticized for a "frat" culture. SoFi is short for Social Finance, Inc., and is the largest online lending company.

The evidence against Cagney is strong, including text messages and people who have seen Cagney flirting and holding hands with another employee. (Cagney is married with two children.) Employees also complain about Cagney bragging about his sexual prowess and about seeing supervisors and employees having sex in the office and in the parking lot. As a settlement, one employee was paid about $75,000 to leave SoFi.

Other lawsuits against the company include unfair labor practices (e.g., pay and breaks) and financial reporting issues. The company denies these claims.

In a message to employees, Cagney explained his reasons for leaving.

All,

It is with a heavy heart that I am announcing that I will step down as CEO of SoFi by the end of
this year.

SoFi has been an amazing journey. From the early days with five of us in a one-room office in 2011, to 1,200 employees spread across the country today, few firms have matched our success. We have had massive impact on our members lives, lending over $20 billion to our over 350,000 members, saving them over $1.8 billion in student loan interest and $500 million in credit-card interest, and helping them advance their careers and relationships.

That impact keeps growing. In the second quarter alone, we funded over $3.1 billion in loans, producing $134 million in revenue and $61.6 million in adjusted EBITDA. I could not be prouder of the company's we've built together.

Recently, though, the focus has shifted more toward litigation and me personally. The combination of HR-related litigation and negative press have become a distraction from the company's core mission.

I want SoFi to focus on helping members, hiring the best people, and growing our company in a way consistent with our values. That can't happen as well as it should if people are focused on me, which isn't fair to our members, investors, or you.

I will be fully dedicated to the business through year-end, and will work closely with the Board to find the best candidate to lead us forward.

SoFi has built an incredible team. While we've come a long way, we're still in the early innings of what we can and will accomplish. I'm grateful to have had the opportunity to help get us to where we are today – and I look forward to seeing where all of you take SoFi in the coming years.

Thanks,

Mike

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Discussion:

• Who is responsible for organizational culture and for maintaining a workplace free of harassment?
• Assess Cagney's resignation letter. To what extent does he demonstrate humility and accountability? Where does the letter fall short?
• Also assess the writing style, tone, audience focus, and organization. What works well, and what could be improved?

News Conference about Deaths at Florida Nursing Home

Eight people died in a nursing home from heat after Hurricane Irma. Local police, the medical director of a nearby hospital, and the city mayor held a news conference to describe the situation. Although the video references six people, two additional have died for a total of eight at Rehabilitation Center at Hollywood Hills. No one was present from the facility.

Florida Governor Rick Scott called the situation "unfathomable" and "inexcusable." The facility didn't lose power, but the air conditioning wasn't working. It's not clear why people weren't transferred to another facility, for example, the hospital across the street. Patients died of heart attacks, dehydration, and other issues related to the extreme heat.

Critics say that some business in Florida, such as gas stations, are required to have backup generators, but this is not the case for nursing homes. A criminal investigation has begun. The owner of the facility has a criminal past involving kickbacks; the case was settled for $15.4 million

At this point, the facility has been evacuated, and people are being accommodated at other locations.

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Discussion:

• Who should be held accountable in this situation?
• Assess the three statements in the news conference. How appropriate was each to the person's role?
• We're obviously missing someone from the rehabilitation facility. Would representation help or hurt their case?
• For the questions we hear in English, how well does the police chief respond? What strategies does he use to deflect questions he can't or won't answer?

Equifax Statement About Security Breaches

A cyberattack on credit reporter Equifax revealed personal information about 143 million people. What makes this breach worrying is the type of information that was stolen: Social Security numbers, birth dates, addresses and, driver's license numbers.

On the home page of its website, Equifax has a red post directing readers to a statement for more information. They are also offering identity protection for people affected.

But the company isn't making it easy. When I entered my information, I saw a message that I may be affected, and then I saw the message at right, saying, in order to enroll, I would need to revisit in 4 days for some reason.

The company fixed another criticism: if you signed up for their protection, there was some question about whether you were waiving rights to sue. The company clarified: "In response to consumer inquiries, we have made it clear that the arbitration clause and class action waiver included in the Equifax and TrustedID Premier terms of use does not apply to this cybersecurity incident."

Overall, the company is accepting responsibility. The Chairman and CEO Rick Smith explained the situation on a video.

Discussion:

• Assess Equifax's statement. What principles of bad news are followed, and how could it be improved.
• Now assess Rick Smith's video statement. Consider the question above as well as delivery skills.

Comms About Hurricane Harvey

As Texas prepares for Hurricane Harvey, government officials and news organizations are preparing communications to help:

• President Trump issued a statement about monitoring the storm and encouraging people to evacuate if they are in the Hurricane's path. The president is also tweeting about the storm.
• His statement points to Ready.gov, a website rich with resources for preparing families in case of flooding, hurricanes, or extreme heat.
• CNN's website shows live updates of the storm's path.
• The National Hurricane Center is posting coastal warnings and a visual of the cone.
• Texas Governor Greg Abbott was interviewed by BBC and is hosting a meeting to plan emergency operations. (His website includes a tweet but nothing else yet about the storm.)

And, of course, the media is covering the storm with bold headlines:

• "Major disaster" (BBC)
• "Monster storm" (Washington Post)
• "Could be much worse than Sandy" (NY Post)

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Discussion:

• Explore Ready.gov. What do you notice about the key messages, organization, and use of visuals? How easy is it to find information?
• Ready.gov, as of now, doesn't feature Hurricane Harvey; it's generic. Should the site be updated to feature the storm? Why or why not?
• Also explore Governor Abbott's website. Does this site feature the hurricane yet? How do you think the hurricane should be positioned here?

Irvine Finds Room for Admitted Students

University of California, Irvine, is trying to do right by 800 students who accepted the college's admissions offer above the expected number. When making admissions decisions, colleges always consider their "yield," or the percentage of students who will enroll. Admissions officers admit more students than they have space for, assuming some won't come because of financial reasons or school preference.

Initially, Irvine rescinded offers from about 500 students, but it was too late for them to enroll in other schools by that time. They informed students during the summer about transcript and other issues, which happens in a few cases each year, but this is an extraordinary number.

Then university administrators began softening. They admitted that they used standards that were too strict in order to lower their enrollment numbers. The vice chancellor wrote a message to students, including this excerpt:

We heard from some students that this year's process was too stringent and our customer-service approach needs improvement. I acknowledge that we took a harder line on the terms and conditions this year and we could have managed that process with greater care, sensitivity, and clarity about available options. Also contributing to the angst many of you have experienced is our traditional communication and outdated telephone systems that did not serve us well in this circumstance. For those who felt ignored or mistreated, I sincerely apologize.

We are making every effort to do better, immediately. I have directed the admissions team to step up the personal outreach to notified students. We're bringing in more people to review appeals and answer phones. We are committed to correcting any errors swiftly and providing the help you need in an empathetic and understanding way.

A few days later, Irvine's chancellor also apologized, and the university found a way to accommodate 290 more students. His message included this excerpt:

The stories of our students whose college dreams were crushed by our decision to withdraw admissions to hundreds of students are heartbreaking. And unacceptable.

This process is not working. We are a university recognized for advancing the American Dream, not impeding it. This situation is rocking us to our core because it is fundamentally misaligned with our values.

The apology is notable because we see so few of them from university presidents. Writers for The New York Times and Insider Higher Ed commented on the rarity of apologies, partly because of the complexity of academic institutions.

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Discussion:

• Analyze the chancellor's and vice chancellor's messages. What communication principles do they use? How do the messages compare in content, tone, word choice, and organization?
• What should Irvine have done differently in this situation? What are all of the touch points with students that could have been improved?

Microsoft Lays Off up to 4,000 Employees

Microsoft will cut thousands of sales and marketing employees in a company restructuring. Most are outside the U.S.

An internal memo describes Microsoft's new strategy for partners and customers but doesn't mention the layoffs specifically. The memo reminds me of a 2014 Microsoft layoff memo criticized for its jargon. Here's an excerpt from the recent one:

There is an enormous $4.5 trillion market opportunity across our Commercial and Consumer businesses. We are uniquely positioned to drive our customers' and partners' success by leading them through their digital transformations, and becoming their partner of choice. To help us do that, starting today, we begin to implement changes to our Commercial and Consumer models. These changes will position us to best meet the evolving needs of our customers and partners, and empower them to achieve more.

To lead this digital transformation and capture this opportunity, the changes we are announcing have been shaped on the following growth drivers, which will enable us to align the right resources for the right customer at the right time.

Research tells us that receivers prefer to hear bad news up front, although givers prefer to "ease" into it. In Microsoft's 2014 layoff memo and another in 2015, the news comes late. In this one, it doesn't come at all. 

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Discussion:

• Why do you think the email doesn't mention layoffs? What are some good reasons to avoid the decision here?
• Read the memo excerpts from Geekwire. How many jargon words do you count?
• Here's a fun activity: rewrite the memo in English.

Uber CEO Travis Kalanick Resigns

What will I write about now? Five large Uber investors have forced CEO and Founder Travis Kalanick to resign. He had already taken a leave following the latest embarrassing news: a negative report from outside counsel and a "sex letter" to employees from 2013. His mother died in a boating accident recently, which may have made it easier for the board to convince Kalanick to go-or maybe he realized it was finally time.

In a statement to The New York Times (not yet posted on the website), Uber's board said Kalanick "always put Uber first." That's true, and possibly to the company's own detriment. Employees, drivers, and shareholders seemed to take a back seat (sorry) to Kalanick's ambitions.

Kalanick said in a statement, "I love Uber more than anything in the world and at this difficult moment in my personal life I have accepted the investors request to step aside so that Uber can go back to building rather than be distracted with another fight."

An Uber spokesperson told Reuters that Kalanick's decision "was a surprise to everyone." First, it doesn't sound as though it was his decision. Second, really?

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Discussion:

• Is this the right time for Kalanick to go? How do you think the board fits into the decision? Why did shareholders instead of board members force his resignation?
• We don't see a full statement yet from the board. What should the company say?

More Bad News for Uber

This is not a good couple of weeks for Uber, and particularly, for CEO Travis Kalanick. After about 8 months on the job, Gautam Gupta, the head of finance will leave, continuing the stream of departures. Last week, the company terminated Anthony Levandowski because of disputes over trade secrets from his previous employer, Alphabet.

In an email to staff, Gupta wrote, "As I leave, Uber will begin the search for a CFO to lead the finance team. This role is critical to writing the next chapter at Uber." By some reports, Uber will have a difficult time recruiting a CFO; the position has been open since 2015. Part of the difficulty lies in questions about the company's business practices; the Financial Times reports an example:

Uber's bookkeeping and pricing practices have come under scrutiny in recent weeks, as Uber announced a refund of tens of millions of dollars to drivers in New York earlier this month, which it said was due to a calculation error.

These departures bring the total to almost a dozen, just as Kalanick is trying to change his personal image. Sadly, he lost his mother this week in a boating accident, and his father was injured. 

Discussion:

• Some question whether Kalanick should remain as CEO as the company goes through an IPO. What do you think?
• What would you consider to be the attractions and drawbacks to the CFO position? In other words, what personal and professional advantages and risks should someone consider before taking the job?