Reuters announced the start of layoffs at face recognition startup Clearview AI. The company is forced to lay off employees due to financial difficulties and litigation. According to agency sources, two directors and most of the sales staff left Clearview AI.
The startup provides facial recognition services to law enforcement, universities and individuals. The company's database includes more than 20 billion images that are compared. Clearview AI was founded in 2017 by Hoan Ton-Tat and Richard Schwartz. At the moment, the startup has a base of more than 3 thousand customers.
The reduction in the company indicates instability in its leadership. Clearview CEO Hoan Ton-Tat said the abolishment and redeployment of responsibilities are aimed at improving the startup's financial security and future growth. In addition, this should lead to increased efficiency and lower operating costs. Ton-Tat did not disclose details about the number of laid-off workers.
Reuters notes that the reduction affected employees who interacted with law enforcement agencies. In February, the Clearview AI staff consisted of about 50 people.
The startup's chief revenue officer, Chris Metaxas, and chief strategy officer, Devesh Ashra, have left the startup. The latter joined the company in May last year. Metaxas confirmed his departure to reporters, while Ashra declined to comment. In February, Ton-Tat said he was pleased with the leadership team that was assembled in 2021.
Last summer, Clearview AI raised $30 million in venture capital. However, rising interest rates and global inflation slowed investment in technology companies and prompted a series of layoffs.
Last month, Clearview AI agreed to settle a privacy lawsuit filed by activists including the American Civil Liberties Union. The company has promised to stop selling its software to most of its US corporate customers.
Also in May, the UK Information Commissioner's Office ordered Clearview to delete all data that belongs to citizens of the United Kingdom. The regulator fined the startup $9.4 million.
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