Uber CEO buys $10 million in shares weeks after cutting 3,300 jobs
Uber's CEO and executives are buying millions in company shares despite the company cutting 10 per cent of its workforce in early September.
Uber CEO Dara Khosrowshahi purchased 141,000 shares worth about $10 million on September 10, buying at prices between $70.73 and $71.18 per share. Uber's President and Chief Operating Officer Andrew Macdonald followed with a $5.3 million purchase.
He added 70,000 shares in early September. Chief Financial Officer Balaji Krishnamurthy also bought shares near $71.25 earlier this year.
These executive purchases come just over a week after Uber cut about 3,300 jobs, about 10 per cent of its workforce, in what CEO Khosrowshahi described as a push for a leaner organisation. Analyst firms covering the company show 42 of 51 rate it buy or higher.
The timing is significant because Khosrowshahi had sold hundreds of thousands of shares near $95 to $100 last September, making this shift a notable change in insider trading patterns.
- $5.3 million for 70,000 shares
- COO share purchase
- 3,300 employees, 10 percent of workforce
- Jobs eliminated
- 42 of 51 analysts rate Uber buy or higher
- Analyst ratings
Why it mattersWhen company executives buy shares after layoffs, it can signal they believe the restructuring will pay off, though it may also reflect confidence they have that others lack.
AustraliaAustralian investors tracking Uber on US markets will see this as a potential sign of insider confidence, though the company's restructuring has already affected Australian operations through workforce changes.
Corroborated bybarrons.com
✓ Claims checked against the source and corrected before publish. checked 50 min ago
