It could also mean (and it sounds like it does) that they are buying back shares. Shares owned by the company are not considered to be outstanding shares. For instance if there are 1 million shares owned by the company and 1 million owned by the public there are 2 million shares but only 1 million outstanding shares.
If the company buys an additional 300,000 shares it means there are only 700,000 outstanding shares.
