Digital Ally Layoffs: 63 Job Cuts Made as 3rd Quarter Revenue Declined by 31%

Digital Ally layoffs

Digital Ally, Inc. (NASDAQ:DGLY), a video surveillance company, has cut 63 employees from its workforce following a weak quarterly report. These Digital Ally layoffs come as the company experienced a steep decline in revenue in the third quarter. Digital Ally’s revenue decline was due to a number of different factors, but ultimately led to the company’s shedding of workers. Digital Ally, a Kansas-based company, has issued a Worker Adjustment and Retraining Notification (WARN) with the state.

The Digital Ally layoffs in 2018 represent a poor start to the year for the company, which manufactures products like body cams for police and vehicle monitoring devices.

Part of the reason for the revenue decline and subsequent job cuts is that a hold was put on vehicle cameras after two fatal accidents occurred, with a claim made by American Medical Response, Inc. (AMR) that Digital Ally’s cameras failed to capture the event. The hold represented a substantial loss to Digital Ally’s bottom line.

Digital Ally Reported Losses of 31% in the 3rd Quarter

Digital Ally’s revenue decline, which prompted the layoffs, showed that the company lost nearly a third of its total revenue in Q3.


The disastrous Digital Ally quarterly results also showed that the company’s gross profit margin had plummeted to 33.8% in the third quarter.

The total revenue decreased to about $3.0 million, down from about $4.3 million a year earlier in the same period.

The company also faced stiffer competition when selling its products to law enforcement, losing out on an international contract that had been in place a year prior.

All these misfortunes compounded in the third quarter, prompting the Digital Ally layoffs of 63 in 2018.

In a statement following the disappointing third quarter, CEO Stanton E. Ross says that the company was, “expecting significant deliveries with AMR in third quarter 2017, but they were placed on hold after they experienced two catastrophic accidents involving the loss of life in vehicles equipped with our DVM-250’s,” with AMR claiming the DVM-250 units in those vehicles failed to record the accidents.

“We have proposed to AMR that it update and upgrade its existing equipment and resume deliveries under the contract, including a roll out to new locations in the first quarter of 2018,” Ross said. “AMR has yet to approve our proposal, but we are encouraged by the dialogue we have had with AMR and are hopeful that deliveries will resume under the contract during first quarter 2018, although we can offer no assurances in this regard.”



Digital Ally, Inc. Announces 2017 Third Quarter Operating Results,” Digital Ally, Inc., November 14, 2017.


Categories: Job Cuts, News