Bitwise Industries leaves hundreds of employees without jobs

FRESNO, Calif. — Hundreds of employees are now without a job and wondering what's next after Bitwise Industries announced it is furloughing its entire workforce.

One now-former employee in Bakersfield confirmed with FOX26 News they were let go by an email and said, “Blindsided is an understatement.”

The woman wished to remain anonymous.

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“It's a very rough time for myself and my coworkers right now...I can imagine it’s similarly affecting Bitwise employees elsewhere," she says, "Most of us woke up expecting to go to work this morning and instead, learned we were temporarily laid off."

In that email, it stated the last paycheck would most likely not go through when deposited at the bank, therefore it means "all Bitwise work stops for the time being."

It also made it clear that it was not a layoff, but a furlough in the email.

But, the now-former employee says she and many others are now having to turn to unemployment or find jobs elsewhere.

“Our futures with the company are unknown. We have no timeframe for our furlough and many of us are panicking. I know coworkers with children who are scrambling to figure out what to do. It’s truly shell-shocked all of us," she expressed to FOX26.

According to FOX26 News partner GV Wire, 300 employees are now out of jobs in Fresno alone.

A big turn of events, from last year, when Bitwise Co-Founder’s Jake Soberal and Irma Olguin Jr. had a huge announcement that they were expanding nationwide.

It added Colorado, New York, Texas, New Mexico and Wyoming to its list of locations.

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It already had sites in Fresno, Merced, Oakland, Toledo and Bakersfield which welcomed Bitwise in 2019 with open arms and big hopes.

“Bakersfield is so ready for this as we look into innovation and as we seek to grow in entrepreneurship and write a new narrative," said Karen Goh, the Mayor of Bakersfield, during the time Bitwise was planning to move in.

On social media, several people questioned what the company actually did.

Bitwise is a tech company that focuses on underserved communities, helps start-up companies, and is known to inspire the next generation of tech leaders and entrepreneurs through training.

It’s goal was to become the nation’s largest tech apprenticeship.

In response to the furloughs, Mayor Jerry Dyer provided the following statement:

Like many in Fresno, we were surprised and saddened to hear about the financial difficulties that led Bitwise to issue furloughs to all its employees. It is our hope that Bitwise will be able to navigate successfully through these uncertain and difficult financial times.

Dyer says the city awarded Bitwise a one-million dollar grant for small business digital empowerment.

So far, the city has paid half of that grant.

It is waiting to see whether the program will be continued or if the funding will need to be returned.

GV Wire is also reporting Bitwise was late on paying Fresno County property taxes.

As of other businesses who are leasing space in the building owned by the company, a tenant tells FOX26 it is unknown.

They had no idea until they saw an article online.

They say as of now, it’s a million-dollar question what will happen to them but there has not been a word from Bitwise.

They say they are allowed in the facility but there are no Bitwise workers around.