Fresno’s Bitwise saga ended shockingly bad. But the hope the company created must not die | Opinion
Bitwise Industries was the Fresno tech firm that taught people how to write computer code and find careers in the digital world.
That noble purpose has come to a shocking end, as reflected in these headlines in The Bee in recent weeks:
▪ “Bitwise Industries furloughs its entire workforce. CEOs cite ‘unexpected’ financial duress”
▪ “Bitwise Industries hasn’t paid Fresno business taxes in more than a year, mayor says”
▪ “Bitwise Industries faced another breach of contract suit in 2022 over building ownership”
▪ “Fresno tech darling Bitwise showed signs of financial distress. What’s next isn’t clear”
The news of Bitwise furloughing its entire work force — 300 in Fresno, 600 more in various offices across the country — broke on Memorial Day.
The rapid fall of Fresno’s high-tech darling has been breathtaking and sad. The impact has been felt across downtown, where Bitwise built four buildings and was leading the charge of revitalization, and City Hall, which partnered with the firm for tech-skills development.
The co-CEOs, once seen as rock stars in Fresno’s economy, have been fired. A breach-of-contract lawsuit has been filed, as has a class-action lawsuit on behalf of the out-of-work employees. City officials are trying to claw back some of a $1 million grant that was awarded to Bitwise for creation of a “Digital Empowerment Center” and training programs aimed to help small business owners.
Since an initial interview with Bee staff writer Tim Sheehan to announce the furloughs, Soberal and Olguin have been silent, which only adds to the disquiet.
Furloughed employees
The blow to Bitwise employees, understandably, has been painful.
City officials extended offers of help and the Fresno Regional Workforce Development Board was to host two in-person sessions for impacted employees.
Still, the shock of losing a job with no warning stings deeply.
Chris Ramos was a Bitwise community revitilization specialist. His belief in the company extended to his husband and mother, as both were employed there. She recently gave up a job of 10 years to become a Bitwise worker.
“We wanted to work at Bitwise as a family until we all retired and believed in the work Bitwise was doing in the world,” Ramos said in a social media posting. “We’re devastated by all of this.”
Started in 2013, Bitwise Industries was a three-pronged business. It trained tech workers (more than 5,000 to date), developed software through Shift3 Technologies and invested in tech-friendly real estate in communities like Fresno, as a means of creating opportunities for like-minded tech start-ups.
Besides Fresno, Bitwise had operations in Merced, Bakersfield, Oakland, Chicago and cities in New York, Wyoming, Colorado, Texas, and Ohio.
Training must not end
However the Bitwise story gets concluded, Fresno leaders cannot miss two lessons:
First, Bitwise brought fresh, needed energy to downtown with its projects. Downtown continues to badly need such vitality. All one has to do is look at boarded-up storefronts on Fulton Street for proof that Fresno’s downtown remains lacking in vibrancy.
Second, Bitwise offered a dream, a priceless commodity to young people and residents of color. As Bee columnist Marek Warszawski outlined, by teaching computer coding and other technical skills, Bitwise gave its students the hope that they could find their place in the digital world.
That purpose must not be allowed to die, even if Bitwise has closed shop for good.
