The company was hard hit by the legal fees over the Facebook investigation and was losing clients, the report quoted a person familiar with the matter as saying.
The employees have been asked to return their computers.
The development followed the suspension of its CEO Alexander Nix in March after he was caught on record suggesting unseemly practices to influence foreign elections.
Cambridge Analytica illegally accessed data from millions of Facebook accounts, whistleblower Christopher Wylie had disclosed earlier. Facebook confirmed the charge in April and informed that the data of a total of 87 million users was used without authorization by the data firm.
Known for its with US President Donald Trump's 2016 Presidential campaign, Cambridge Analytica was recently alleged to have influenced the 2014 general elections in India as well. (ANI)