Uber recently laid off about 25% of its workforce. There is not much for them at the end of the pandemic. However, just days after the second cycle of layoffs at Uber, the company’s senior vice president of marketing and public affairs, Jill Hazelbaker, sold half of its stake in Uber for $ 8.6 million, according to documents filed with the SEC. It is strange in several respects.
First, it was not a stock market transaction preprogrammed under the “10b5-1 rule plan”, which gives shareholders a way to sell shares without violating the rules on insider trading or appearing to have lost confidence in the company.
The Hazelbaker trade appears to have been pre-authorized by Uber’s legal department and therefore not a last-minute decision. Second, the size of the sale is unusual. Between May 21 and May 25, it carried out four transactions which sold 250,000 of its 436,680 shares, or 57% of its assets.
Hazelbaker’s big sale sparked some chatter among other employees of the carpooling company. Uber’s revenues fell and 10,000 Uber employees were laid off. Some believe that this shows a lack of confidence in the company or that it is preparing to resign. For what it’s worth, Hazelbaker is the oldest executive at Uber who has never cashed his shares before. She has been with the company for five years and is the last remaining executive to be a co-founder and former CEO. Travis Kalanick.
Hazelbaker isn’t the only person connected to top-level Uber selling stocks. Co-founder Camp Garrett has sold $ 69.6 million since the start of the pandemic in the United States. Since last fall, it has sold 44% of its stake in the business, according to documents filed with the SEC. Since January 2020, he has sold $ 145.4 million worth of shares. It has sold $ 69.6 million since March. For Camp, however, it has been pre-arranged and is part of the rule 10b5-1 plan.
Camp announced that he would resign from his voting position on the board of directors of Uber on March 31. The camp is a member of the Giving Pledge.