For the last decade, Bitwise had been selling a powerful dream to cities across the Central Valley and the country. That dream was abruptly shattered when Bitwise furloughed all 900 of its employees. “I can’t put into words… how betrayed I feel.”
As tech giants lay off scores of workers amid a sector-wide downturn, employees who once considered the Silicon Valley companies a safe long-term bet are reconsidering their allegiances.In April, Olguin and Soberal sent an email out to employees announcing that payroll would be transitioning from direct deposit to paper checks.
Multiple employees reported that their paychecks, which came from First Republic Bank, started bouncing in April, with one employee’s bank rejecting the check due to “insufficient funds” a week after the deposit was made.Bitwise co-CEOs Jake Soberal and Irma Olguin Jr., right. That unease gave way to real panic around 8 p.m. Memorial Day, when Soberal sent an email informing workers of an “URGENT” all-staff call. By the end of that call, all 900 of Bitwise’s employees had lost their jobs in what the CEOs called a furlough.
On June 2, the landlord for Bitwise’s three Fresno buildings was preparing to evict its errant tenant. Former employees also are pursuing a class-action lawsuit against Bitwise, asserting that the company violated the California Worker Adjustment and Retraining Notification Act, which requires adequate notice for mass layoffs or furloughs, as well as committed wage theft and numerous other labor code violations.Proposed legislation would require employers who lay off more than 50 workers at a time to provide employees with 90 days notice.
The legal action names Olguin and Soberal as well as the members of the Bitwise board, which includes interim president Douglass. Douglass and the board did not respond to requests for comment. The only communication employees have received from him is a notice Tuesday to preserve company documents and records — indicating the company may be gearing up for a legal fight.Despite receiving millions of dollars from investors and garnering enviable coverage in, Bitwise’s operations — and how exactly it made revenue — may be puzzling to outside observers.
Fresno Mayor Jerry Dyer said the city paid $500,000 and held back the other half until proof of performance. The city verified $120,000 worth of services provided two months ago but has no proof for the rest.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bounced paychecks, frozen 401(k)s — How Fresno's ‘shining star’ let down the people it aimed to serveFor the last decade, Bitwise had been selling a powerful dream to cities across the Central Valley and the country. That dream was abruptly shattered when Bitwise furloughed all 900 of its employees on Memorial Day evening.
Read more »
Power outages hit Mira Mesa, Sorrento Valley, Scripps Ranch -SAN DIEGO (CNS) – A series of power outages left neighborhoods across Mira Mesa, Sorrento Valley and Scripps Ranch without electrical service today. The series of five blackouts struck between 8:50 a.m. and just before noon, knocking out power to a total of 1,433 San Diego Gas & Electric customers, the utility company reported. Service was expected to be restored...
Read more »
Coachella Valley Music and Arts Festival 2024 dates announcedThe three-day, two-weekend festival will return to Indio next April.
Read more »
Wealth gap, racial inequalities highlighted in annual Silicon Valley Pain IndexThe 2023 Silicon Valley Pain Index found the gap between the richest residents in Silicon Valley and the poorest is widening.
Read more »
Valley hat store gets NBA Finals commercialStraw and Wool was selected to be part of an ESPN initiative, highlighting black-owned businesses. MORE ⬇️
Read more »
Witness to West Valley crash in search of man who pulled two people from burning carA Valley man wants to find a hero after watching a driver help two people in a serious crash. MORE ⬇️
Read more »