Bitwise Industries lays off all 900 employees

 

workforce training startup Bitwise Industries laid off all 900 employees, citing "unforeseeable business circumstances and other reasons."  The layoffs come just four months after the firm raised $80M. Troubles have escalated at the firm, with the Fresno-based startup edging on the brink of bankruptcy, dealing with multiple lawsuits, and facing fraud allegations against its founders. Long-time backer of the firm, Kapor Capital, is now claiming that the founders and co-CEOs Jake A. Soberal and Irma L. Olguin Jr. misled VCs by allegedly inflating financials.  Bitwise's board fired Soberal and Olguin in early June and brought in board member Ollen Douglass as their replacement.  The news came after the firm ceased operations and furloughed all its staff on Memorial Day, May 29. An email sent out to all employees on Wednesday confirmed that the layoffs would be permanent.  Former employee Chase Carter filed a lawsuit alleging that the firm stole his company Listing Alert and did not transfer the sum.  Another lawsuit accuses the founders of failing to pay wages and violating the Warn Act.  Bitwise Industries had raised $150M from investors, including JPMorgan Chase and Goldman Sachs.