Additionally, the company said “the siege of media coverage has driven away virtually all” of its customers and suppliers. Therefore, it was forced to shut down its operations and file for bankruptcy.
Moreover, Cambridge Analytical said the decision was extremely difficult for its leaders. It is also more difficult for its dedicated employees who would be losing their jobs. The company intends to fully meet its obligations to its employees despite its unstable financial conditions.
A person familiar with the situation told The Wall Street Journal that Cambridge Analytica’s legal expenses had been increasing because of the Facebook investigations. Before releasing its statement regarding its bankruptcy, the company requested its employees to return their computers.
Meanwhile, a spokesperson for Facebook told Recode, “This doesn’t change our commitment and determination to understand exactly what happened and make sure it doesn’t happen again. We are continuing with our investigation in cooperation with the relevant authorities.”
