BAKERSFIELD, Calif. (KERO) — Bitwise Industries, a Fresno-based tech company, is known for building tech economies in underestimated cities. In California, the company has sites in Fresno, Merced, Oakland, and Bakersfield. Recently, Bitwise sent an email to all its current employees that they were being furloughed immediately and indefinitely.
The company says the reasoning behind the furloughs is due to "financial hardships."
Bitwise Industries has been around since 2013 with a focus on digital product development. According to the City of Bakersfield, Bitwise has had a handful of contracts, some of which are still active. One of those contracts is for around $600,000 and is related to the development of small business technology services.
Following the sudden announcement, Bakersfield Ward 2 City Councilman and Vice Mayor Andrae Gonzales says the city is working to find solutions for the people impacted.
"What this means for people is really devastating. People are dealing with real issues trying to make rent, trying to pay their mortgage payments. Those are men and women who came to a company not just for a job but for a mission and something that they believed in at Bitwise," said Gonzales.
Regardless of whether Bitwise fulfills its city contracts, Gonzales says the city's mission to provide small businesses with opportunities is still in full effect.
"Whether it's Bitwise that does it or if it's another firm, or if perhaps we find other strategies to support small businesses, we're going to continue to do that work," said Gonzales. "Nothing has changed there."
The furlough announcement did not come as a complete surprise to one former California Bitwise employee who spoke to 23ABC affiliate ABC30 Action News in Fresno on the condition of anonymity.
"It was not sustainable because just from what I saw, it did not seem like a business that knew how to function, with the amount of people that it brought in and just the work they were doing, taking on too much," said the employee.
According to the California Employment Development Department:
A company with a covered establishment that has 75 employees or more is required to file a warn notice if the company lays off 50 or more employees during any 30-day period. - California Labor Code §1400
The clerk for the Kern County Board of Supervisors says that as of Thursday, June 1, their office had not received a warn letter from Bitwise Industries.
Gonzales says that despite this unprecedented situation, the city is working to assist the affected employees.
"I just got off the phone with the city manager to talk about how we can utilize our Rental Assistance fund, for example, so that we can provide some emergency rental assistance to individuals who are unable to pay their rent," said Gonzales, pointing out that this happened right before the first of the month.
Gonzales goes on to say that the city is also looking at its own list of available city jobs in order to provide opportunities for furloughed Bitwise employees to work for the city.
As for Bitwise, Gonzales says the picture still isn't clear.
"With every new day comes more information and we still don't know the full extent of their financial situation and some of the issues," said Gonzales.
23ABC News has reached out to Bitwise Industries for comment on this matter, but we have not heard back. Stay connected to 23ABC on the air and online for the latest updates as soon as they become available.
IN-DEPTH: APPLYING FOR UNEMPLOYMENT
If you're let go from a job and looking to apply for unemployment benefits, there are a few things you need to know about eligibility requirements in the State of California.
According to the state's Employment Development Department, when applying for unemployment, to qualify you must be either totally or partially unemployed.
Your unemployment must have also occurred through no fault of your own, so getting laid off is one thing, but if you voluntarily quit, you're giving up your eligibility for unemployment benefits.
Unemployment eligibility in California is also contingent on the applicant being both physically able and ready to immediately accept any job offer they get.
