Data analytics company Palantir (NYSE:PLTR) has confirmed plans to cut a bit less than 2% of its workforce in the latest round of tech layoffs. The layoffs will affect an estimated 75 people, per the company’s December U.S. Securities and Exchange Commission (SEC) report.
A Palantir spokesperson offered MarketWatch further details on the job cuts.
“We believe our company is at an inflection point and to continue to evolve, we are making the tough choice of reducing teams in several areas … While less than 2% of our workforce is impacted by these changes, these are incredibly painful decisions but the right ones for the company’s future.”
Palantir’s surprise layoffs come just a month after Chief Executive Alex Karp claimed the Denver-based company was looking to hire a couple hundred employees over the course of the new year.
Despite the layoffs, Palantir plans to “pace hiring” in 2023, according to CFO David Glazer at the company’s Feb. 13 earnings call.
“As we look ahead to 2023, we will continue to exercise spend discipline across the company [and] pace hiring while continuing to invest in high priority areas, including in our product offerings, building out our go-to-market strategy and technical roles.”
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Palantir Layoffs Surprise Investors
Monday’s layoff announcement comes as a shock to investors after the company reported its first-ever profitable quarter earlier this month. Indeed, Karp announced the company expects to end its current fiscal year in the green for the first time in its history, on the back of an 18% Q4 revenue increase.
Despite the layoff announcement, investors seemed unbothered by the news. PLTR stock ended Monday close to even on the day and up more than 25% year to date.
Palantir represents the latest tech company forced to lay off employees in the face of a wider slowdown. Indeed, the Federal Reserve’s interest rate hikes have proven a major obstacle to many highly leveraged tech and growth companies. After Monday’s news, Palantir joins the likes of Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) and Meta (NASDAQ:META), all of which have announced sweeping job cuts over the past several months.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.