As of today, scandal-ridden Cambridge Analytica has shut down. The firm experienced great backlash from consumers and politicians alike, and faces continuous investigations, The Wall Street Journal reports. In a conference call today with the firm‘s employees, chairman Julian Wheatland of the firm‘s parent company SCL Group, announced the news, per Gizmodo.
It’s not just Cambridge Analytica closing its doors because SCL Group is also doing the same, founder Nigel Oakes told The Wall Street Journal. After the news broke that the firm was shutting down, Cambridge Analytica issued a press released itself announcing that it and SCL Group will no longer be operating. Bankruptcy filings will begin as well.
Facebook scandal and ongoing investigations hit both companies pretty hard, Wheatland said according to documents obtained by Gizmodo. While there were talks of rebranding, it was decided that this route was “futile” and that the reputation was too far damages and too costly. For employees, they were instructed to immediately return their keycards.
According to the press release from Cambridge Analytica, the firm maintained innocence and “has been vilified for activities that are not only legal, but also widely accepted as a standard component of online advertising in both the political and commercial arenas.” The company’s internal investigation came up negative as far as allegations go and that the allegation against the company weren’t factually supported. Due to the “siege of media coverage has driven away virtually all of the Company’s customers and suppliers,” this has resulted in the shutdown of the business.