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 The Unexpected Collapse of Bitwise Industries: A Devastating Blow to Fresno's Tech Scene

Introduction:

Bitwise Industries, a promising tech company based in Fresno, recently experienced a shocking and sudden collapse, leaving its employees devastated. The company, which had been operating for a decade, was known for its efforts to revitalize neglected areas in cities across the Central Valley and the country through training, software services, and co-working spaces. However, signs of trouble had been accumulating for months, despite the support it received from city officials, community members, and even Governor Gavin Newsom. This blog post delves into the series of events that led to Bitwise's downfall and its profound impact on its employees.

A Sudden Turn of Events:

On a fateful Memorial Day evening, Bitwise Industries made a drastic move by furloughing all 900 of its employees. To their dismay, a few days later, the employees received the news that their jobs were permanently eliminated. This sudden development sent shockwaves through the company and the wider tech community. Co-CEOs and co-founders, Irma Olguin Jr. and Jake Soberal, were swiftly fired by the board of directors, and an interim president, Ollen Douglass, was appointed to manage the aftermath.



Employees Left in Panic and Uncertainty:

Former Bitwise employees, already burdened by previous challenges such as lawsuits, bounced paychecks, and missed property tax payments, were now thrown into a state of panic and uncertainty. Paychecks for the last three weeks of work remained uncleared, and accessing their 401(k) accounts became an impossibility. To make matters worse, healthcare benefits were abruptly terminated, leaving employees without coverage. Understandably, many of them felt betrayed and devastated by the company they had believed in.

Unveiling the Hidden Financial Crisis:

As the story unfolded, it became apparent that Bitwise's demise was not solely a consequence of a slowing economy, as witnessed in other tech industry layoffs. The company's financial troubles had been carefully concealed from its employees, who were consistently reassured that everything was fine. However, critical financial transactions failed to materialize, ultimately leading to the sudden furloughs. This revelation added a layer of shock and disappointment for those who had placed their trust in Bitwise's mission.

Support and Legal Action:

Recognizing the immense challenges faced by the affected employees, various efforts have been initiated to support them. Resource and job fairs organized by Fresno and Kern County officials aim to connect these individuals with alternative tech-related job opportunities. Moreover, former employees are banding together and pursuing class-action lawsuits against Bitwise Industries, accusing the company of labor law violations and wage theft.

Unraveling the Financial Mystery:

Bitwise's operations and revenue sources have become a subject of confusion for external observers. The company's diverse lines of business, which included a coding bootcamp, co-working spaces, software development, and public-funded contracts, seemed promising. However, despite attracting investments and positive media coverage, Bitwise's financial situation appears to have been precarious, ultimately leading to its collapse.

Conclusion:

The sudden and unexpected collapse of Bitwise Industries has left a void in the Fresno tech scene and beyond. The impact on its dedicated employees, who believed in the company's mission, cannot be underestimated. Legal battles are likely to unfold as the affected employees seek justice. The story of Bitwise serves as a reminder of the importance of transparency and financial stability in businesses, even those with noble aspirations. Moving forward, the community will need to rally together to support those affected and rebuild the trust that has been shattered by this unfortunate turn of events.