Palantir is cutting around two percent of its staff as layoffs continue in the tech sector.

The layoffs will affect around 75 of the data analytics company’s 3,838 workforce.

A spokesperson said the company intends to continue recruiting in key areas despite shedding staff.

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Palantir said: “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 two percent of our workforce is impacted by these changes, these are incredibly painful decisions but the right ones for the company’s future.”

The cuts came after the software company posted its first profitable quarter for the fourth quarter earlier this month.

CEO Alex Karp said the business aims to profit in the current fiscal year.

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Palantir is well-known for its work with federal defense agencies.

It revealed an 18 percent growth in fourth-quarter revenue to $509 million.

It is the latest tech company to confirm job cuts as the sector braces for a slowdown after more than a decade of rampant growth.

Twilio, Dell, Zoom, and eBay reported huge staff downsizing this month.

Google said plans to let go of over 12,000 employees in January, Microsoft announced a plan for 10,000 job losses, and Salesforce also axed 7,000 jobs.

Source: CNBC

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