NewsStocksAI Surveillance Startup Flock Safety to Cut Several Hundred Jobs Amid Growing Backlash

AI Surveillance Startup Flock Safety to Cut Several Hundred Jobs Amid Growing Backlash

Author: Bworldonline·

Key Takeaways

  • •Flock Safety intends to reduce its workforce by about 18%, affecting roughly 270 of its approximately 1,500 employees, after a voluntary separation program launched in September.
  • •The company has not made the plan public and declined to comment, leaving which teams and functions will be affected unclear ahead of departures at the end of the month.
  • •Despite a $7.5 billion valuation and more than $950 million raised from venture investors, Flock faces intensifying scrutiny, including Florida's September ban on automated license plate readers on state highways and a Virginia lawsuit alleging warrantless surveillance.
  • •A Reuters/Ipsos poll found Americans divided on Flock's cameras, with 47% opposing their use in their community versus 38% supporting, and the technology has become a flashpoint in this year's midterm elections.
  • •Flock's network of roughly 120,000 AI-powered cameras across 49 states serves more than 4,800 law enforcement agencies and nearly 1,000 businesses, while Home Depot investors have demanded a review of partnerships with surveillance vendors.
AI Surveillance Startup Flock Safety to Cut Several Hundred Jobs Amid Growing Backlash

Flock Safety plans to lay off about 18% of its workforce, people with direct knowledge of the plans said on Thursday, as the maker of AI-powered surveillance cameras and license-plate readers confronts mounting opposition to its products from communities and lawmakers.

The people said job cuts followed a voluntary buyout program and are expected to affect roughly 270 employees at Flock, a surveillance technology startup that has expanded rapidly in recent years. Employees will depart at the end of the month. The sources declined to be identified because the company has not yet made the plan public, leaving open questions about which teams and functions will be affected.

Flock declined to comment.

In September, Flock announced a voluntary separation program, asking employees to apply if they wished to leave the company, Wired reported last month. The company employs about 1,500 people, meaning the planned reductions would touch roughly one in five workers.

Flock is facing growing scrutiny from regulators, lawmakers, and privacy advocates, even as it continues to draw strong interest from venture capital investors. A recent Reuters/Ipsos poll found that Americans are divided on whether Flock cameras are a good idea: 38% of respondents support the use of Flock cameras in their community, while 47% oppose their use. The workforce reduction lands against that backdrop — a company valued at $7.5 billion in its most recent funding round, with a core product that divides the public it serves.

Across 49 states, Flock's network of roughly 120,000 AI-powered cameras, mounted on streets and highways, automatically reads license plates and records vehicles as they pass.

Founded in 2017 and headquartered in Atlanta, the company has raised more than $950 million from venture capital investors. Its latest round, a $275 million raise in March led by Andreessen Horowitz, valued Flock at $7.5 billion. The funding has supported a new US manufacturing facility and an upcoming push into drone products, according to the company.

Flock supplies cameras and software to more than 4,800 law enforcement agencies and nearly 1,000 businesses. The company says its technology helps investigate and solve crimes, but it has come under increasing scrutiny over alleged privacy violations and data-sharing practices.

Public backlash has intensified. In September, Florida banned automated license plate readers from state highways, citing privacy risks tied to Flock's cameras. Home Depot investors recently demanded a review of the retailer's partnerships with surveillance technology vendors following reports that Flock's data had been used in immigration enforcement.

Flock also faces legal challenges, including a privacy lawsuit in Virginia alleging that the widespread deployment of its AI-powered cameras constitutes warrantless surveillance.

Together with AI data centers, Flock cameras have emerged as a flashpoint in this year's midterm elections, with candidates increasingly attacking their opponents by tying them to the technology. With the reduction plan not yet public, an official confirmation from Flock — including details on which roles are affected — is the immediate detail to watch before employees depart at the end of the month.

— Reuters