The British company at the center of the data scandal gripping Facebook is shutting down.
Cambridge Analytica announced Wednesday that it is ceasing all operations.
The political consulting firm has reportedly been losing its staff since March, when it was revealed that it had improperly obtained data on 87 million users on Facebook.
"While this decision was extremely painful for Cambridge Analytica’s leaders, they recognize that it is all the more difficult for the Company’s dedicated employees who learned today that they likely would be losing their jobs as a result of the damage caused to the business by the unfairly negative media coverage," Cambridge Analytica said in a statement. "Despite the Company’s precarious financial condition, Cambridge Analytica intends to fully meet its obligations to its employees, including with respect to notice periods, severance terms, and redundancy entitlements."
Founded by former White House chief strategist Stephen Bannon and Robert Mercer, a hedge fund billionaire and GOP mega-donor, the company lost its CEO, Alexander Nix, in March after hidden camera footage showed him admitting that the company blackmails political clients' rivals.
The firm has done data work for President Donald Trump, whose team is under investigation for possible collusion with Russia.
“This doesn’t change our commitment and determination to understand exactly what happened and make sure it doesn’t happen again," a Facebook spokesperson said in a statement Wednesday after Cambridge Analytica made the announcement. "We are continuing with our investigation in cooperation with the relevant authorities.”
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