How can a company reduce the number of shares outstanding?

A company can reduce the number of shares outstanding through a share buyback program, where it purchases its own shares from the open market, thereby decreasing the total number of shares available. Additionally, the company can engage in a reverse stock split, which consolidates multiple shares into fewer ones, effectively increasing the share price while reducing the total share count. Both methods can enhance earnings per share (EPS) and potentially improve shareholder value.