Uber recently laid off about 25% of its workforce. The company is facing significant business challenges during the pandemic shutdown. Just days after the second wave of layoffs, Jill Hazelbaker, Uber's senior vice president of marketing and public affairs, sold half of her stake in the company for a whopping $8.6 million, as reported in documents filed with the SEC. This move has raised eyebrows for several reasons.
Firstly, Hazelbaker's stock sale was not part of a pre-scheduled trading plan under the "Rule 10b5-1" guideline, which allows stockholders to sell shares without appearing to have lost confidence in the company. Instead, her trade seemed to be pre-approved through Uber's legal department, indicating it was a calculated decision rather than a hasty exit. Secondly, the volume of shares sold was remarkable; between May 21 and 25, Hazelbaker executed four transactions, liquidating 250,000 of her 436,680 shares, which is about 57% of her total holdings.
Hazelbaker's significant sell-off has sparked discussions among remaining Uber employees. With revenue taking a nosedive and 10,000 workers laid off, many are interpreting her actions as a sign of diminishing confidence in the company's future, or perhaps even a signal that she plans to resign. Notably, Hazelbaker is the longest-serving executive at Uber who had never previously cashed out her shares and has been with the company for five years, making her departure all the more intriguing.
Garrett Camp, Uber's co-founder, has also been selling stock during this tumultuous period. He has reportedly liquidated $69.6 million worth of shares since the pandemic began in the U.S. Since last fall, he has sold 44% of his stake in the company, totaling $145.4 million since January 2020, with $69.6 million of that amount sold since March. However, unlike Hazelbaker, his sales were pre-arranged and part of the Rule 10b5-1 plan. Camp announced his resignation from his voting position on Uber's board on March 31 and is a member of the Giving Pledge.
