Flock Safety, the maker of licence-plate-reading cameras used by thousands of American police departments, has laid off 270 employees as it seeks to raise revenue per employee and extend its path to profitability.

The cuts affect roughly a fifth of the company’s workforce, according to reports. Chief executive Garrett Langley told staff the company needs a leaner cost structure as it scales its camera and audio-sensor networks across the United States.

Flock Safety has grown rapidly on the back of law enforcement contracts, but its surveillance technology has drawn scrutiny from privacy advocates and some city councils. Critics argue that networks of automated plate readers enable warrantless tracking of residents’ movements.

The layoffs come as investors scrutinise unit economics across the gov-tech sector. The company, last valued in the billions, has been expanding into gunshot detection and drone response products while defending its core camera business against municipal pushback.

Langley said affected employees will receive severance and extended health benefits. The company said the restructuring will not affect its commitments to existing law enforcement customers or its product roadmap for next year.